LONDON MARKETS: FTSE 100 Rises As China Renews Hopes For Global Trade Calm
11 April 2018 - 1:06AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Pound jumps after Bank of England policy maker calls for a rate
hike soon
U.K. stocks climbed Tuesday to levels not seen since late
February, joining a global equity rally spurred by comments from
President Xi Jinping, who promised to open China's markets.
Xi's pledge to foreign companies, made at a major conference in
Asia, may help to soothe fears of an all-out trade war between the
U.S. and China, a factor in the recent bouts of volatility for
equities.
How markets are moving
The FTSE 100 added 0.7% to 7,241.14, after finishing up 0.2% on
Monday. If the index holds around these levels, it could make for
the best close since February.
See:Brace for more 'poor' action by U.K. stocks, says world's
largest asset manager
(http://www.marketwatch.com/story/brace-for-more-poor-action-by-uk-stocks-says-worlds-largest-asset-manager-2018-03-27)
The move higher came as U.S. stocks rallied
(http://www.marketwatch.com/story/us-stocks-primed-to-rally-hard-on-xis-promise-to-open-chinas-markets-2018-04-10),
and as Asia closed out a strong session
(http://www.marketwatch.com/story/asian-markets-fall-following-wall-streets-late-selling-2018-04-09),
keying off optimism over the perceived easing in global trade
tensions.
(http://www.marketwatch.com/story/asian-markets-waver-after-trumps-latest-broadside-against-china-2018-04-05)Sterling
moved to a two-week high after comments from Bank of England policy
maker Ian McCafferty that there should be no delay in raising
interest rates, speaking in an interview with Reuters
(https://www.reuters.com/article/us-britain-boe-mccafferty/bank-of-england-mustnt-dally-over-next-rate-hike-mccafferty-idUSKBN1HH0V2).
The pound hit $1.4178 against the dollar in the wake of the
remarks, up 0.3%, against $1.4130 late Monday in New York.
Against the euro , sterling was flat at EUR1.1465.
What's driving markets
China's Xi pledged better access
(http://www.marketwatch.com/story/chinas-xi-promises-to-open-chinas-markets-to-foreign-businesses-2018-04-09)
for foreign companies to his country's markets in a keynote speech
at the Boao Forum, a government-backed event for business and
political leaders held on Hainan island. Among the promises was a
vow to cut tariffs on imported autos and speed up access to the
insurance sector.
However, the World Trade Organisation said Tuesday that China
has filed a complaint over U.S. tariffs on steel and aluminum
products, the Associated Press reported.
President Donald Trump's administration has been targeting
Chinese goods in its plans to impose tariffs on imports. That has
prompted a tit-for-tat exchange of trade levies between the world's
two biggest economies in recent days, and the tensions have taken
markets on a volatile ride at times.
In London, mining stocks gained after Xi's comments, as China is
a major buyer of industrial and precious metals.
In other geopolitical news, Trump and his national security team
have started to lay the groundwork for a possible military strike
against the forces of Syria's leader, Bashar al-Assad, over a
suspected deadly chemical attack on civilians.
What strategists are saying
"The lack of any ramping-up of the U.S./Chinese
trade-war-by-rhetoric is helpful, however, and more importantly has
been well received in Asian markets where risk is 'on' equities are
up across the board and even the Turkish Lira's stronger as Europe
opens," said Kit Juckes, chief foreign-exchange strategist for
Société Générale, in a note to clients.
Stock movers
Mining-related stocks were out in front with gains. Anglo
American PLC (AAL.LN)led the London index and the sector higher
with a 4.8% gain, while Antofagasta PLC (ANTO.LN) was up 4.5%. Rio
Tinto PLC (RIO) (RIO)(RIO) gained 2.7%, while BHP Billiton PLC
(BLT.LN) (BLT.LN) (GLEN.LN)was up 3.3%.
Glencore PLC (GLEN.LN) (GLEN.LN)(GLEN.LN) rose 2.7%. The
Anglo-Swiss mining and commodity-trading company said Chief
Executive Ivan Glasenberg has stepped down
(http://www.marketwatch.com/story/glencore-ceo-glasenberg-resigns-as-rusal-director-2018-04-10)
as director of Russia-based United Co. Rusal PLC (0486.HK) , which
fell 7% in Hong Kong after a 50% plunge on Monday in the wake of
the latest U.S. sanctions
(http://www.marketwatch.com/story/us-targets-putins-son-in-law-in-new-russian-sanctions-2018-04-06).
Shares in Evraz PLC (EVR.LN), a steel and mining company with
operations in Russia but London headquarters, rebounded 1.9% after
leading the FTSE's losers Monday with a 14% loss.
United Utilities Group PLC (UU.LN) was down 3.2%.
(END) Dow Jones Newswires
April 10, 2018 10:51 ET (14:51 GMT)
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