LONDON MARKETS: Ryanair, Trade Worries Sink London Markets
May 20 2019 - 09:58AM
Dow Jones News
By Dave Morris
Ryanair's gloomy outlook for the coming year dragged on London
markets Monday and fellow airlines, while banks were also
weaker.
A fresh bout of trade tensions also weighed on London and
European equities.
How did markets perform?
The U.K.'s FTSE 100 dropped 0.9% to 7,285.65. On Friday it had
edged down 0.1%.
The pound reversed course and gained 0.1% to $1.2736 after
falling 0.4% Friday.
What's moving the markets?
Sunday's meeting of the Organization of the Petroleum Exporting
Countries (OPEC) sent oil prices higher
(http://www.marketwatch.com/story/oil-prices-rise-on-signs-opec-may-extend-output-cuts-2019-05-20)
after Saudi Energy Minister Khalid al-Falih said efforts to shrink
crude inventories could continue into the second half of 2019.
al-Falih said further inventory management would be "gentle" and
remain responsive to the needs of the market.
Trade tensions rebooted Monday after news that some tech
companies in the U.S. and elsewhere have begun to comply with the
White House's ban
(http://www.marketwatch.com/story/google-xilinx-begin-to-comply-with-trump-ban-on-huawei-2019-05-20)
on China's Huawei Technologies Inc. Shares of Infineon Technologies
Inc. (IFX.XE) slid nearly 5% after the German chip group said it
was also cooperating.
The war of words between the U.S. and China continued as
President Donald Trump said concessions in negotiations could not
be "50-50" because trade practices by China had historically
damaged the U.S. There is currently no timeline for the two sides
to resume talks.
Writing in the Sunday Times
(https://www.thetimes.co.uk/past-six-days/2019-05-19/comment/my-withdrawal-agreement-bill-will-be-a-bold-new-offer-to-mps-7dxkkqs27),
U.K. Prime Minister Theresa May said she hoped to get a Brexit deal
through Parliament on her fourth attempt by making what she called
a "new and improved" offer. The move eliminates the prospect of
indicative votes, but critics warned that the gambit would fail
unless there were significant changes.
Which stocks are active?
Ryanair Group Holdings PLC (RYAAY) plummeted 4.1% after warning
that the grounding
(http://www.marketwatch.com/story/ryanair-warns-of-profit-hit-over-737-max-grounding-2019-05-20)
of Boeing's 737 MAX jets would have a negative impact on the coming
year's results. The company reported full year earnings to March 31
showing pretax profits fell 30% year over year. It cited fuel and
staff costs as factors in the decline.
Among banks, heavily weighted HSBC Holdings PLC (HSBA.LN)
(HSBA.LN) fell 1%, while Lloyds Banking Group PLC (LLOY.LN)
(LLOY.LN) fell 1.5%.
(END) Dow Jones Newswires
May 20, 2019 09:43 ET (13:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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