New Model Adviser - For professional financial planners

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

FTSE slumps as Trump's tariffs threat to China weighs

FTSE 100 falls more than 100 points after US president Donald Trump threatens to escalate trade dispute with China.

FTSE slumps as Trump's tariffs threat to China weighs

The FTSE 100 has fallen more than 100 points, steadily losing ground throughout the session after US president Donald Trump threatened to escalate his trade dispute with China.

The UK blue-chip index fell 114 points, or 1.6%, to 7,267 points, after Trump threatened to hike tariffs on $200 billion of Chinese goods from 10% to 25% this Friday.

Trump tweeted on Sunday that the tariffs would rise this week following slow progress of trade talks between the two countries.

'Having spent most of this year rallying on the prospect that China-US trade talks would yield some form of compromise agreement, investors experienced a bit of a reality check over the weekend,' said Michael Hewson, chief market analyst at CMC Markets UK.

Miners, sensitive to China's economy given the country's status as the world's biggest metals consumer, were among the fallers.

Glencore (GLEN) was down 3.2% at 288.9p and Antofagasta (ANTO) fell 3.1% to 852p.

Outside the FTSE 100, China-focused investment trusts fell after China's benchmark Shanghai Composite index dropped 5.6% on Monday following Trump's intervention.

Fidelity China Special Situations (FCSS) was down 3.9% at 233p and JPMorgan Chinese (JMC) dropped 3% to 294.5p.

Domino's Pizza (DOM) was among the 'mid-cap' fallers, down 2.2% at 255p as the pizza delivery firm said it no longer expected its international business to break even this year.

Steve Clayton, who owns the shares in his HL Select UK Growth Shares and HL Select UK Income Shares funds, said the news was 'disappointing'.

'Domino's are struggling to make their international business fire on all cylinders,' he said.

'Despite the group recruiting new management to drive an improvement overseas, sales are ticking backwards. The problems have been around for a while, but the group has not yet found the solutions.'

Among 'small-cap' stocks, Vectura (VEC) surged 12% to 81p as the drug maker won a patent infringement case against GlaxoSmithKline (GSK) in the US, winning $89.7 million (£67.5 million) in damages.

On the Alternative Investment Market, Neil Woodford-backed Purplebricks (PURP) fell 10% to 121.6p as the online estate agent announced founder Michael Bruce would step down as chief executive.

The group said it would wind down its Australian operations and was reviewing its US business.

Share this story

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
More Content
7345.78 -23 0.31% 04:35
More Content

Related Fund Managers

Steve Clayton
Steve Clayton
9/205 in Equity - UK (All Companies) (Performance over 1 year) Average Total Return: 4.36%
Neil Woodford
Neil Woodford
165/165 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: -18.19%
More Content

BUSINESS

15 Comments IFA's Treasury letter urging pensions to fund property purchase

IFA's Treasury letter urging pensions to fund property purchase

Advice firm Clifton wrote to the Treasury to argue first-time buyers should be allowed to save for a deposit through their pension arrangements then repay the pension, with interest, over the term of the mortgage.

ADVICE

15 Comments IFA's Treasury letter urging pensions to fund property purchase

IFA's Treasury letter urging pensions to fund property purchase

Advice firm Clifton wrote to the Treasury to argue first-time buyers should be allowed to save for a deposit through their pension arrangements then repay the pension, with interest, over the term of the mortgage.

twitter_banner

INVESTMENT