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UK's blue chip stocks fell sharply on Wednesday, dropping by two weeks, as the US announced plans to hit Chinese products with an additional $ 200 billion, intensifying the trade fight among the world's biggest economies world.
How Markets Evolved
The FTSE 100 Index
UKX, -1.32%
fell 1.3% to 7 593.68, of course for its largest decline since June 25th. All sectors declined, driven by the basic materials and technology groups. Tuesday's index finished up less than 0.1% after a hectic session.
The pound
GBPUSD, -0.2411%
was at $ 1,3279, little changed from $ 1,3274 Tuesday night in New York. Against the euro, the pound
GBPEUR, + 0.1504%
went from 1.1303 € to 1.1313 €.
What determines the market?
U.K.. and the wider European stock market
SXXP, -1.11%
put an end to a collapse of the Asian stock markets. The Shanghai Composite
SHCOMP, -1.76%
sank 1.8% and Hang Seng index of Hong Kong
HSI, -1.29%
decreased by 1.3%. US equity futures also reported a sharp decline as trading begins Wednesday on Wall Street.
The slides came after the White House announced Tuesday that it was preparing to assess tariffs of 10% out of another $ 200 billion worth of products imported from China. The Chinese Ministry of Commerce said in a statement that the new levies are "totally unacceptable" and that the behavior is not only detrimental to China, but to the world
Beijing has fought back with tariffs of the same amount.
The proposed new tariff for items including electronic components, furniture and tuna would come into effect in two months, giving both countries time to discuss the issue, and US companies to comment on the list of products concerned .
Highly weighted mining stocks on the FTSE 100 were again affected by the prospect of a deterioration in trade relations between the United States and China, which is the world's largest copper buyer. Copper Futures
HGU8, -2.99%
fell nearly 3% on the New York Mercantile Exchange on Wednesday.
What strategists say
• "If we see that these duties come into play, almost half of Chinese exports will be subject to tariffs. Let me put this in plain language so that the markets try to understand: "It's a T-R-A-D-E W-A-R. Not a spit, "said Michael Every, senior Asia-Pacific strategist at Rabobank, in a note.
For its part, China" can not put up $ 200 billion in tariffs since it's not enough. " she does not buy more than 200 billion dollars of American goods! So where are we going? Somewhere that says "risk on"? Note that at the time of writing [the yuan] was again at 6.69, and Chinese stocks are tanking, "said Every.
Stock movers
Investors snatched shares of metal producers, with Glencore PLC
GLEN, -4.11%
GLCNF, -2.70%
Down 4.5%, Anglo American PLC
AAL, -4.02%
off 4%, and copper miner Antofagasta PLC
ANTO, -3.07%
3.4% lower. Iron ore producer BHP Billiton PLC
BLT, -3.17%
BHP, + 0.69%
BHP, -1.31%
decreased by 3.1%.
The actions of oil producers were also stunned alongside the miners. BP PLC
BP., -2.41%
BP, + 0.97%
took off 2.5% and Royal Dutch Shell PLC
RDSB, -1.73%
RDS.B, + 0.51%
decreased by 1.9%.
Asian Lending Shares HSBC PLC
HSBA, -1.16%
and Standard Chartered PLC
STAN, -1.98%
were down 1.1% and 2.1%, respectively.
shares of Burberry Group PLC
BRBY, -3.57%
BURBY, + 1.17%
lost 2.7% after the luxury goods retailer said the reduced demand for tourists in Europe led to a decline in same-store sales in the first quarter. These sales increased by 3% compared to 4% in the same quarter of the previous year.
Shares Indivior PLC
INDV, -31.24%
plunged 31% on the FTSE 250 mid-cap index
MCX, -1.24%
after the drug manufacturer issued a profit and sales warning for 2018, citing negative market developments in the US automaker Sky [19659044]
SKY, -0.60%
fell 0.8% after 21st Century Fox Inc.
FOXA, + 0.42%
raises its takeover bid for the British broadcaster, valuing it at £ 24.5 billion ($ 32.5 billion), triggering a war of Auctions with Comcast Corp.
CMCSA, -0.66%
.
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