Belfast Telegraph

FTSE 100 ends in the red as trade fears weigh

Donald Trump is planning tariff hikes.

The FTSE 100 ended in the red on Tuesday as trade fears again reared their head to weigh on global markets.

London’s top flight closed the day down 46.74 points, or 0.62%, at 7,457.86.

Analysts put the slide down to renewed concerns over trade, as Donald Trump prepares to impose a further 200 billion US dollars worth of tariffs on Chinese imports this week.

David Madden, market analyst at CMC, said: “Trade concerns continue to weigh on markets. Since the US was on holiday yesterday, markets are picking up where they left off last week.

The US president is looking to row back on his earlier promise to try and remove trade barriers with the EU David Madden, CMC market analyst

“President Trump is maintaining a tough line when it comes to trading with the EU, Canada and China.

“The US president is looking to row back on his earlier promise to try and remove trade barriers with the EU.

“Investors know how popular European cars are in the US, and they know how important the sector is to the European economy.”

In stocks, WPP ended at the foot of the index, despite the advertising giant lifting its full-year sales outlook.

New boss Mark Read also revealed like-for-like sales grew by 2.4% in the three months to June 30 – its first quarterly growth since the start of 2017. But WPP shares ended down 80p at 1,196.5p.

On the FTSE 250, Redrow shares took a dive after the housebuilder urged the Government to provide clarity over Brexit.

Chairman Steve Morgan warned that if its housebuilding boom is to continue, Theresa May’s Tories must provide clarity over Brexit, as well as the future of Help to Buy.

Shares closed down 11.5p at 545p, despite the firm also posting a 21% rise in pre-tax profits to a record £380 million.

Sterling was on the slide again after lacklustre figures from the construction sector weighed on the British currency.

The Markit/CIPS UK Construction purchasing managers’ index (PMI) fell to 52.9 in August, down from 55.8 in July.

The pound was down 0.3% against the dollar at 1.283. Versus the euro, sterling was up 0.1% at 1.109.

Mark Carney’s admission that he is in talks with the Treasury over extending his tenure as Bank of England governor – doing “whatever” he can to support the UK through Brexit – did little to help the pound.

Mr Madden said: “Mark Carney, the governor of the Bank of England, didn’t offer a clear message whether he will be staying in the role beyond June 2019. Mr Carney confirmed he is willing to ‘help’ but traders can’t do much with that.

“The UK economy is facing major political uncertainty and some clarity would be helpful.”

In Europe, Germany’s DAX closed down 0.31% while France’s CAC shed 1.31%.

Brent crude was trading up 0.6% at 78 US dollars per barrel.

The biggest risers on the FTSE 100 were Whitbread up 119p at 4,700p, Barclays up 3.5p at 181.02p, RBS up 3.7p at 246.5p and Lloyds up 0.73p at 60.35p.

The biggest fallers were WPP down 80p at 1,196.5p, Berkeley Group down 160p at 3,510p, Persimmon down 80p at 2,358p and Just Eat down 22.8p at 753.4p.

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