LONDON MARKETS: FTSE 100 Falls As Trade Fears Show No Sign Of Abating
June 25 2018 - 6:04AM
Dow Jones News
By Victor Reklaitis, MarketWatch
But Quilter PLC shares leap in their trading debut
U.K. stocks lost ground Monday, with analysts blaming the drop
on fresh worries about a potential global trade war, after the U.S.
over the weekend continued its tough talk on that front.
How markets are moving
The FTSE 100 fell 0.7% to 7,626.52, after closing 1.7% higher on
Friday and rising 0.6% last week
(http://www.marketwatch.com/story/ftse-100-rallies-tries-to-turn-green-for-the-week-2018-06-22).
The blue-chip gauge is down 0.8% this year.
The pound traded at $1.3242, down modestly from $1.3264 late
Friday in New York.
Don't miss:2 years after Brexit vote, these charts show the U.K.
economy losing momentum
(http://www.marketwatch.com/story/two-years-after-brexit-vote-these-charts-show-the-uk-economy-losing-momentum-2018-06-22)
What's driving markets
Investors are still concerned that trade tensions between the
U.S. and major trading partners such as China and the European
Union could develop into a big drag on the global economy.
President Donald Trump on Sunday issued new threats
(http://www.marketwatch.com/story/trumps-latest-threat-to-us-trade-partners-drop-tariffs-or-face-consequences-2018-06-24)
against America's trade partners, calling for them to remove trade
barriers and tariffs, or face the consequences.
"The United States is insisting that all countries that have
placed artificial Trade Barriers and Tariffs on goods going into
their country, remove those Barriers & Tariffs or be met with
more than Reciprocity by the U.S.A. Trade must be fair and no
longer a one way street!" Trump said in a tweet.
Check out:And the most American-made car is...
(http://www.marketwatch.com/story/and-the-most-american-made-car-is-2018-06-21)
In addition, Trump plans to bar many Chinese companies from
investing in U.S. technology firms, and by blocking additional
technology exports to Beijing, said a Wall Street Journal report
(http://www.marketwatch.com/story/trump-seeks-curbs-on-chinese-investment-in-us-tech-firms-exports-to-china-2018-06-24)
citing people familiar with administration plans. The twin
initiatives are set to be announced by the end of the week.
What strategists are saying
"The global battle over trade is going to impair global economic
growth, and it is also rattling investors' confidence," said Naeem
Aslam, chief market analyst at Think Markets UK, in a note.
"These trade tensions remain the main focal point for investors
today, as the situation has intensified further."
Stock movers
On the up side, shares in wealth manager Quilter PLC jumped 8%
in their trading debut for the FTSE 100's biggest gain.
Earlier Monday, financial holding company Old Mutual PLC
(OML.LN)said it had priced the initial public offering of its
Quilter business
(http://www.marketwatch.com/story/quilter-ipo-prices-at-145p-a-share-old-mutual-2018-06-25),
previously known as Old Mutual Wealth Management, at 145 pence per
share.
Shares in oil giants Royal Dutch Shell PLC (RDSA.LN)
(RDSA.LN)and BP PLC (BP.LN) (BP.LN)fell 0.6% and 1.7%,
respectively, as Brent crude futures
(http://www.marketwatch.com/story/brent-slides-after-opec-lifts-output-caps-2018-06-25)declined.
Oil traders are continuing to react this past weekend's agreement
(http://www.marketwatch.com/story/russia-backs-opec-plan-for-nominal-lift-to-oil-production-2018-06-23)among
key producers to lift production caps.
(END) Dow Jones Newswires
June 25, 2018 05:49 ET (09:49 GMT)
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