LONDON MARKETS: FTSE 100 Heads Toward First Fall In 3 Sessions As Miners Decline
July 16 2018 - 5:17AM
Dow Jones News
By Carla Mozee, MarketWatch
Brexit bill heads back to parliament
U.K. stocks tilted lower Monday, with mining shares struggling
after data showed economic growth slowed modestly in China, putting
the London benchmark at risk for its first loss in three
sessions.
How markets are moving
The FTSE 100 index shed 0.2% to 7,650.33, with basic materials
and tech stocks among sectors losing ground. But industrial and
financial shares gained modestly. On Friday, the benchmark rose
0.1%
(http://www.marketwatch.com/story/ftse-100-steps-higher-pound-falls-as-trump-criticizes-soft-brexit-plan-2018-07-13)
and finished last week with a 0.6% rise, the first gain in three
weeks.
The pound traded at $1.3234, on par with late Friday's level in
New York.
What's driving the market
Mining stocks, which are heavily weighted on the FTSE 100,
struggled Monday in the wake of Chinese figures on gross domestic
product in the second quarter. Quarterly growth in China -- the
largest consumer of industrial metal copper -- came in at 6.7%,
(http://www.marketwatch.com/story/china-growth-slows-slightly-in-second-quarter-2018-07-16)
the slowest rate since the third quarter of 2016, as Beijing
continued efforts to rein in debt at financial institutions.
"The growth data may have been in line with economist
expectations, and above Beijing's own 6.5% target, but the risk is
that Asia's powerhouse slows even further should a U.S.-instigated
trade war gather momentum," said Accendo Markets analysts Mike van
Dulken and Artjom Hatsaturjants in a note.
Europe, China and the U.S. have a duty "not to start trade
wars," said European Council President Donald Tusk, who spoke on
Monday at a summit between European Union and Chinese officials in
Beijing. The U.S. government last week said it plans to expand its
tariffs against Chinese goods imported into the U.S. to $200
billion in products. President Donald Trump called the EU "a foe"
(http://www.marketwatch.com/story/trump-the-european-union-is-our-foe-2018-07-15)
of the U.S. in an interview with CBS Evening News that aired
Sunday.
Read: These are the retail brands that will be hurt most by
Chinese tariffs
(http://www.marketwatch.com/story/these-are-the-retail-brands-that-will-be-hurt-most-by-chinese-tariffs-2018-07-12)
Also:Here's when Americans will start feeling the pain from
escalating Trump-imposed tariffs
(http://www.marketwatch.com/story/heres-when-americans-will-start-feeling-the-pain-from-escalating-trump-imposed-tariffs-2018-07-11)
Also in focus on Monday will be fresh votes in the U.K. House of
Commons on amendments to the bill that will take the U.K. out of
the European Union. They will be the first votes on amendments
related to trade after U.K. Prime Minister Theresa May won support
for a soft-Brexit strategy from her cabinet when they met at
Chequers earlier this month. That strategy includes negotiating for
frictionless trade in goods between the U.K. and the EU.
But May's vision moving forward prompted cabinet resignations by
cabinet members David Davis and Boris Johnson, among others, and
Monday's votes face the prospect of rebellion by members of May's
Conservative Party. In an article published Monday in the Telegraph
newspaper
(https://www.telegraph.co.uk/politics/2018/07/15/rest-world-believes-britain-time-did/),
Johnson, who had served as Foreign Secretary, wrote that Britain
should "militate ceaselessly for free trade deals" and said Britain
needs to believe it can stand strong in a post-Brexit
environment.
Stock movers
Among miners, Glencore PLC (GLEN.LN) dropped 0.9%, BHP Billiton
PLC (BLT.LN) (BHP.AU) (BHP.AU) fell 0.5% and Antofagasta PLC
(ANTO.LN) gave up 0.3%.
Hargreaves Lansdown (HL.LN) fell 4% after the U.K. Financial
Conduct Authority
(https://www.fca.org.uk/publications/market-studies/ms17-1-investment-platforms-market-study)said
it's considering banning exit fees from online investment
platforms.
Micro Focus International PLC (MCRO.LN) lost 4.5% after Credit
Suisse reportedly cut its rating on the software maker.
Indivior PLC (INDV.LN) soared 33% on the mid-cap FTSE 250 index
after the drug maker late Friday said it won a preliminary
injunction against Dr. Reddy's Laboratories Ltd
(http://www.marketwatch.com/story/indivior-wins-prelim-injunction-vs-dr-reddys-2018-07-16).
(500124.BY) (500124.BY) over a product that treats opioid
dependence.
(END) Dow Jones Newswires
July 16, 2018 05:02 ET (09:02 GMT)
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