Red card for trade tariffs (and VAR)

The FTSE is trying to break back above 7600 to reverse this morning's sell-off which was fuelled by a spiraling of trade war fears.

Red card for trade tariffs (and VAR)

The FTSE is trying to break back above 7600 to reverse this morning’s sell-off which was fuelled by a spiralling of trade war fears; US President Trump suggesting another $200bn in tariffs (on top of the initial $50bn) in retaliation to China announcing its own $50bn import duties. Tit-for-tariff.  The question now, is where this all ends. USD strength from safe-haven seeking is pushing GBP lower, however, the FTSE is failing to benefit as much as it usually would; the threat to international trade is understandably greater than the accounting benefit. Contributors: FTSE100 -30pts, dragged lower by Miners (trade war fears, stronger USD), HSBC (China exposure), AHT (weaker Q4), PRU/BARC/LLOY (financial, risk-off), SHP (Takeda shares -2.4%), EVR (stronger USD), CRH (US exposure). Insufficient buoyancy from the positive contribution from BATS/DGE/IMB/RB/ULVR (defensive, weaker GBP) and FERG (results).Technicals: The FTSE100 is trying to break back above 7600 to further reverse last night’s breakdown and this morning’s sell-off.

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Categories: Analysis, News
Tags: FTSE 100

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