FTSE 100 opens lower as trade war worries weigh
The FTSE 100 opened lower this morning as escalating trade tensions between the US and China took their toll.
London’s blue-chip index was down 0.5 per cent in early trading, as stuttering trade talks were compounded by a lack of economic data or earnings.
Read more: EU and UK feel the pain as global pain contracts
Friction between the world’s two largest economies has heightened after US President Donald Trump earlier this week signed two bills in support of protesters in Hong Kong.
The move sparked an angry response from Beijing, which said the endorsement was “full of prejudice and arrogance”.
FTSE All-Share Risers
| Company | Price | Change (%) |
| Reach | 93.30 | +11.74 |
| Ocado | 1,342.50 | +11.13 |
| Virgin Money UK | 177.60 | +4.47 |
| Kenmare Resources | 231.00 | +4.05 |
| VP | 916.00 | +3.15 |
“Fears that Donald Trump’s decision to sign a law backing the Hong Kong protestors is certainly a weight on sentiment and may be blamed for this drift, but we need to see whether this will have a material impact on trade talks or whether Beijing will set that to one side,” said Neil Wilson, chief market analyst at Markets.com.
The decline followed a dip in Asian markets overnight, with Hong Kong’s Hang Seng index suffering a two per cent decline. The FTSE’s weaker trading means it is back under 7,400 points.
FTSE All-Share Fallers
| Company | Price | Change (%) |
| St James’s Place | 1.067.00 | -4.65 |
| Gem Diamonds | 54.80 | -4.53 |
| Carrs Group | 144.00 | -4.00 |
| Canada Investment Group | 414.00 | -3.72 |
| Aptitude | 582.00 | -3.64 |
The tensions also weighed on European stocks, with Germany’s Dax and France’s Cac 40 down more than 0.5 per cent and 0.3 per cent respectively.
The pound was flat against both the dollar and the euro at the start of the session, as last night’s climate debate had little impact.
Read more: China rages after Trump signs bills in support of Hong Kong protesters
Publisher Reach bucked the downward trend in London stocks on the FTSE 100. It jumped almost 12 per cent after it confirmed it had abandoned its pursuit of JPI Media and reported a slowdown in revenue decline.
Online grocer Ocado also jumped after it announced a licensing deal with Japanese retail giant Aeon.