FTSE dented as trade war fears reignite

London’s top flight took a hit after Us-chinese trade tensions ratcheted up once more.

The FTSE 100 followed markets across Europe to close the day 103.15 points lower at 7,231.04.

Tensions between the two global powerhouses appeared to calm earlier in the week but flared up again as the Chinese Ministry of Commerce said trade discussions could not continue unless the US “adjusts its wrong actions”.

David Madden, market analyst at CMC Markets UK, said: “There are no planned meetings between both sides, and that is sending out a ver y negative message. It appears that all the progress that was made throughout 2019 has gone up in smoke in a few weeks.”

In stocks, Thomas Cook shares crept up after travel group confirmed it had received a “highly preliminar y and unsolicited indicative offer” for its northern Europe business, comprising its tour operator and airline in Nor way, Sweden, Finland and Denmark. Shares closed 0.26p higher at 12.47p.

The competition regulator has taken steps to block Sainsbury’s and Asda from reviving their failed mega-merger bid for at least ten years. The Competition and Markets Authority intends to make an order which will prevent the companies by law from forming a tie-up. Sainsbury’s shares closed 4.3p lower at 195.05p.

Meanwhile, the boss of Royal Bank of Scotland owner Lloyds has been called before MPS to defend the bank’s executive pension policies.

Chief executive Antonio Hor ta- Osorio has been invited by the work and pensions committee to give evidence regarding the lender’s pay policies.