LONDON MARKETS: FTSE 100 Edges Lower, But Tesco's Jump Helps Limit Drop
11 April 2018 - 6:16PM
Dow Jones News
By Victor Reklaitis, MarketWatch
Shares in online retailer Asos tumble
U.K. stocks moved lower Wednesday, erasing part of this week's
advance, as traders focused on trade-related tensions and the
conflict in Syria.
Tesco PLC helped keep the FTSE 100 benchmark's losses in check,
with the supermarket operator's shares jumping after its
results.
How markets are moving
The FTSE 100 fell 0.2% to 7,256.10, but remained up for the
week, with a gain of 1%.
The pound traded at $1.4216, rising from $1.4177 late Tuesday in
New York.
Don't miss: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)
What's driving markets
Worries about a global trade war have persisted for weeks. While
the Trump administration exempted most countries from recent U.S.
tariffs on imports of steel and aluminum, its targeting of Chinese
goods has fanned fears.
Yet concerns appear to be ebbing this week, thanks to a
less-aggressive stance on trade taken by Chinese President Xi
Jinping in a key speech Tuesday
(http://www.marketwatch.com/story/chinas-xi-promises-to-open-chinas-markets-to-foreign-businesses-2018-04-09).
Read:How China's Xi, without blinking on trade, got the stock
market to cheer
(http://www.marketwatch.com/story/the-stock-market-is-cheering-what-chinas-xi-didnt-say-on-trade-2018-04-10)
And see:Here's how a 'trade skirmish' could become a global
'trade war'
(http://www.marketwatch.com/story/heres-how-a-trade-skirmish-could-become-a-global-trade-war-2018-04-03)
In a fresh geopolitical concern for investors, the possibility
of a U.S. strike against Syrian President Bashar al-Assad appeared
to be growing, with President Donald Trump and his administration
working to rally international support
(http://www.marketwatch.com/story/us-rallying-support-from-allies-for-military-strike-on-syria-2018-04-10).
Talk of such a strike has been simmering since a suspected
chemical-weapons attack killed civilians in Damascus over the
weekend.
What strategists are saying
Some measures mentioned by Xi could take a long time to become
reality, "if they can even be delivered at all," said Michael
Hewson, chief market analyst at CMC Markets UK, in a note. "For
equity markets to regain a sense of equilibrium, we need to start
to see progress on the road away from a potential trade war, and
currently there is no evidence of that whatsoever."
That could be why stock markets are showing some softness,
Hewson added.
Stock movers
Tesco shares (TSCO.LN)climbed 4.6% for one of the FTSE 100's
biggest gains after the U.K.'s No. 1 grocer by market share
declared its first year-end dividend in four years
(http://www.marketwatch.com/story/tesco-declares-first-year-end-dividend-in-4-years-2018-04-11)
and said that its pretax profit increased multifold.
Evraz PLC shares (TSCO.LN) -- a steel and mining company with
operations in Russia but London headquarters -- jumped 4.8% but
remained down 10% for the week. Stocks with Russian links have been
taking it on the chin this week after fresh U.S. sanctions
announced on Friday
(http://www.marketwatch.com/story/us-targets-putins-son-in-law-in-new-russian-sanctions-2018-04-06)
that targeted Russian individuals and entities.
Check out:Russia ETFs tumble after sanctions
(http://www.marketwatch.com/story/russia-etfs-tumble-after-sanctions-2018-04-09)
Off the FTSE 100, Asos PLC shares (ASC.LN)tumbled 10% after the
online clothing retailer said total capital expenditure is set to
increase
(http://www.marketwatch.com/story/asos-profit-rises-10-as-site-visits-top-1-billion-2018-04-11).
The company also said pretax profit for the first half of fiscal
2018 rose 10% as the number of visits to its website exceeded 1
billion for the first time.
Economic data
February reports on U.K. industrial production and merchandise
trade are due at 9:30 a.m. London time, or 4:30 a.m. Eastern
Time.
(END) Dow Jones Newswires
April 11, 2018 04:01 ET (08:01 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024