The start of the US trading session has been positive for traders of Tesla and Microsoft.
FTSE 100 goes down as American tech woes put pressure on global markets
On Wednesday, British equities headed south, reacting to a dive in American stocks in the previous trading session, where technology names managed to take a hammering.
The FTSE 100 index UKX inched down 0.7% being worth 6,950.60. It’s because the only the utilities sector, found defensive by experts, tacked on. The given dive actually contrasts with Tuesday’s 1.6% ascend that concluded a four-session losing marathon. In 2018, the London blue-chip benchmark has lost over 9%.
The currency pair GBP/USD ended up with $1.4176, soaring from $1.4159 demonstrated in New York on Tuesday.
Market participants were greatly impressed by Tuesday’s abrupt downturn in American equities. For example, the Nasdaq Composite Index COMP dived 2.9%. Equities of Twitter lost 1.32% on concerns as for its data business. As for Facebook, involved in a customer data scandal, inched down 5%.
In addition to this, on Tuesday, news that China and America are conducting behind-the-scenes trade negotiations helped to power a leap in London-listed blue chips because worries regarding a global trade conflict abated.
Aside from that crude stocks slumped along with crude prices CLK8, as the American Petroleum Institute demonstrated an abrupt soar in weekly American crude supplies.
Both crude producers BP PLC BP and Royal Dutch Shell PLC RDSB inched down 1.2% as crude prices went down.
As for techs, equities of software maker Sage Group PLC SGE went down 1.4%, while business software maker Micro Focus International PLC MCRO headed south 0.1%.
BT Group PLC BT slumped 0.3% after the British telecommunications watchdog, Ofcom officially confirmed fresh regulations aimed at driving investment in full-fiber broadband networks. However, it set a greater cap than earlier specified on the amount BT charges to counterparts to utilize its fast broadband service.
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.
More tariffs were introduced
During the Asian trading session, the White House economic adviser Larry Kudlow announced the positive progress in phase one trade deal with China.
The Bank of Mexico is expected to cut its interest rate from 7.75% to 7.5% today at 21:00 MT time
Today, the oil prices may move on the release of crude oil inventories at 18:00 MT time.