LONDON MARKETS: FTSE 100 Ends Slightly Lower, As Tesco's Jump Helps Limit Drop
April 11 2018 - 12:43PM
Dow Jones News
By Victor Reklaitis, MarketWatch
Tesco shares leap 7%, while Syria worries weigh on markets
world-wide
U.K. stocks finished slightly lower Wednesday, erasing a bit of
this week's advance, as traders focused on the conflict in
Syria.
Tesco PLC helped keep the FTSE 100 benchmark's losses in check,
with the supermarket operator's shares jumping after its
results.
How markets are moving
The FTSE 100 fell 0.1% to end at 7,257.14, but remained up for
the week, with a gain of 1%.
The pound traded at $1.4199, rising from $1.4177 late Tuesday in
New York.
What's driving markets
In a fresh geopolitical concern for investors, the possibility
of a U.S. strike against Syrian President Bashar al-Assad appeared
to be growing, with President Donald Trump and his administration
working to rally international support
(http://www.marketwatch.com/story/us-rallying-support-from-allies-for-military-strike-on-syria-2018-04-10).
Talk of such a strike has been simmering since a suspected
chemical-weapons attack killed civilians in Damascus over the
weekend. It could draw the U.S. into a conflict with Russia, which
backs the Assad regime.
Trump on Wednesday signaled that an attack using missiles was
not far off. "Get ready Russia, because they will be coming, nice
and new and smart!" he said in a tweet
(https://twitter.com/realDonaldTrump/status/984022625440747520).
Meanwhile, worries about a potential global trade war have
persisted for weeks. While the Trump administration exempted most
countries from recent U.S. tariffs on imports of steel and
aluminum, its targeting of Chinese goods has fanned fears.
Yet concerns appear to be ebbing this week, thanks to a
less-aggressive stance on trade taken by Chinese President Xi
Jinping in a key speech Tuesday
(http://www.marketwatch.com/story/chinas-xi-promises-to-open-chinas-markets-to-foreign-businesses-2018-04-09).
Read:How China's Xi, without blinking on trade, got the stock
market to cheer
(http://www.marketwatch.com/story/the-stock-market-is-cheering-what-chinas-xi-didnt-say-on-trade-2018-04-10)
And see:Here's how a 'trade skirmish' could become a global
'trade war'
(http://www.marketwatch.com/story/heres-how-a-trade-skirmish-could-become-a-global-trade-war-2018-04-03)
What strategists are saying
"Traders are tetchy over tensions surrounding the U.S., Russia
and Syria," said David Madden, market analyst at CMC Markets UK, in
a note. "Equity markets are off the lows of the session, but
sentiment is from bullish."
Stock movers
Tesco shares (TSCO.LN)climbed 7.2% for the FTSE 100's biggest
gain after the U.K.'s No. 1 grocer by market share declared its
first year-end dividend in four years
(http://www.marketwatch.com/story/tesco-declares-first-year-end-dividend-in-4-years-2018-04-11)
and said that its pretax profit increased multifold.
Evraz PLC shares (TSCO.LN) -- a steel and mining company with
operations in Russia but London headquarters -- rose 1.3% but still
was down 12% for the week. Stocks with Russian links have been
taking it on the chin this week after fresh U.S. sanctions
announced on Friday
(http://www.marketwatch.com/story/us-targets-putins-son-in-law-in-new-russian-sanctions-2018-04-06)
that targeted Russian individuals and entities.
Check out:Russia ETFs tumble after sanctions
(http://www.marketwatch.com/story/russia-etfs-tumble-after-sanctions-2018-04-09)
Off the FTSE 100, Asos PLC shares (ASC.LN)tumbled by about 10%,
but then pared losses and closed lower by 2.4%. The online clothing
retailer said total capital expenditure is set to increase
(http://www.marketwatch.com/story/asos-profit-rises-10-as-site-visits-top-1-billion-2018-04-11).
It also said pretax profit for the first half of fiscal 2018 rose
10% as the number of visits to its website exceeded 1 billion for
the first time.
Economic data
Manufacturing output in the U.K. fell on the month
(http://www.marketwatch.com/story/uk-factory-output-falls-for-1st-time-in-months-2018-04-11)
in February, adding to signs the economy had a slow start to
2018.
Don't miss:Brace for more 'poor' action by U.K. stocks, says
world's largest asset manager
(http://www.marketwatch.com/story/brace-for-more-poor-action-by-uk-stocks-says-worlds-largest-asset-manager-2018-03-27)
After the U.K. market's close, the minutes from the most recent
meeting of the U.S. Federal Reserve are expected. The release is
scheduled for 2 p.m. Eastern Time, or 7 p.m. London time.
Check out:5 things to watch from minutes of the Fed's March
meeting
(http://www.marketwatch.com/story/five-things-to-watch-from-minutes-of-the-feds-march-meeting-2018-04-10)
(END) Dow Jones Newswires
April 11, 2018 12:28 ET (16:28 GMT)
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