The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
FTSE 100 concludes down on trade tensions
On Wednesday, British equities concluded a bit down. It’s due to the fact trade conflict concerns intensified ahead of China’s highly anticipated responsive duties on American goods. Additionally, the European bloc considered a possibility of an international pact to have duties on car imports cut.
However, the UK pound managed to soar a bit, reacting to a better-than-anticipated outcome on British services sector activity.
The FTSE 100 index headed south by 0.3% coming up with a result of 7,573.09, thus giving up part of Tuesday’s ascend of nearly 0.6%. As a matter of fact, for the week the London benchmark has slumped approximately 0.8%.
The currency pair GBP/USD stood still sticking with $1.3218.
Trading volumes in Great Britain and the European Union were suppressed due to the fact that American financial markets are unavailable for the Independence Day holiday. Apart from that market participants are shifting their attention to the monthly American jobs report to be released on Friday.
Moreover, Donald Trump’s ambitious campaign to fix what he considers to be unfair trade conditions with America’s trading partners keeps to reverberating around the world.
On Friday, China’s supposed to start putting duties on $34 billion of American products, and the Trump administration’s duties on $50 billion in Chinese imports are expected to come into effect on Friday too. To be exact, China’s duties will come true in 12 hours sooner due to the time difference.
Simultaneously, China is trying to urge the European bloc to team up against Trump’s outrageous trade stance at next weekend’s summit.
In June, British services activity demonstrated an eight-month maximum.
Anglo American PLC equities managed to ascend by 2.1%.
J Sainsbury PLC equities tacked on by 3%. In addition to this, Ryanair Holdings PLC RYA managed to add 0.7%.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
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