FTSE 100 falls below 7,400 after sterling’s election poll surge
The FTSE 100 sank below 7,400 points in early trading as markets responded to a surge in sterling and China lashing out at Donald Trump’s endorsement of Hong Kong protesters.
The US President signed two bills into law overnight aimed at scrutinising China’s influence in the territory and banning exports of crowd control munitions like tear gas.
Read more: China rages after Trump signs bills in support of Hong Kong protesters
Beijing responded with an angry denouncement and said Trump’s move was “full of prejudice and arrogance”.
Traders saw the move as a threat to already slow progress in trade talks with China.
“At such a delicate moment for trade talks this could tip the balance against agreement,” CMC Markets chief market analyst Neil Wilson said.
“To rob a phrase, Trump seems apt to bring discord where there was harmony. China has promised countermeasures. It’s interesting how economic disagreements are being politicised. We’ve seen how Trump has used tariffs as a diplomatic tool – this move, albeit in reverse, is in this vein.”
It marks a fall from grace for London’s blue-chip index after yesterday threatening to surpass late-September highs at 7,440 points.
The FTSE 100 hit 7,390.3 points as a number of stocks going ex-dividend also hit the index.
Sterling’s surge yesterday after a mega-poll showed the Tories hold a commanding lead ahead of the December General Election also hurt the FTSE 100’s exporters.
“Having touched that high, without any real catalyst a bit of a pullback is to be expected,” Wilson added.
Read more: Labour is about to overhaul its election strategy after mega-poll loss
The FTSE 100 sank below 7,400 points in early trading as markets responded to Donald Trump’s endorsement of Hong Kong protesters, with the move threatening already slow progress in trade talks with China.
The US President signed two bills into law overnight aimed at scrutinising China’s influence in the territory and banning exports of crowd control munitions like tear gas.
Beijing responded with an angry denouncement and said Trump’s move was “full of prejudice and arrogance”.
“At such a delicate moment for trade talks this could tip the balance against agreement,” CMC Markets chief market analyst Neil Wilson said.
“To rob a phrase, Trump seems apt to bring discord where there was harmony. China has promised countermeasures. It’s interesting how economic disagreements are being politicised. We’ve seen how Trump has used tariffs as a diplomatic tool – this move, albeit in reverse, is in this vein.”
It marks a fall from grace for London’s blue-chip index after yesterday threatening to surpass late-September highs at 7,440 points.
The FTSE 100 hit 7,390.3 points as a number of stocks going ex-dividend also hit the index.
Sterling’s surge yesterday after a mega-poll showed the Tories hold a commanding lead ahead of the December General Election also hurt the FTSE 100’s exporters.
“Having touched that high, without any real catalyst a bit of a pullback is to be expected,” Wilson added.
Germany’s Dax bourse sank 0.36 per cent while France’s Cac dropped 0.33 per cent.
Meanwhile, Asian stocks slipped overnight on the Hong Kong situation. The Nikkei fell 0.12 per cent and the Hang Seng dipped 0.22 per cent.
Germany’s Dax bourse sank 0.36 per cent while France’s Cac dropped 0.33 per cent.
Meanwhile, Asian stocks slipped overnight on the Hong Kong situation. The Nikkei fell 0.12 per cent and the Hang Seng dipped 0.22 per cent.