LONDON MARKETS: FTSE 100 Logs First Loss In 3 Sessions As Miners, Oil Stocks Decline
17 July 2018 - 2:34AM
Dow Jones News
By Carla Mozee, MarketWatch
Brexit bill heads back to parliament
U.K. stocks finished in the red Monday, as oil shares were
knocked lower and as mining shares struggled after data showed
modestly slowing economic growth in China, sending London benchmark
lower for the first time in three sessions.
How markets moved
The FTSE 100 index stumbled 0.8% to close at 7,600.45. On
Friday, the benchmark rose 0.1%
(http://www.marketwatch.com/story/ftse-100-steps-higher-pound-falls-as-trump-criticizes-soft-brexit-plan-2018-07-13)
and finished last week with a 0.6% rise, the first gain in three
weeks.
The pound traded at $1.3228, down from $1.3234 late Friday in
New York.
What's driving the market
Falls in commodity stocks hurt the FTSE 100, as they are heavily
weighted on the benchmark. Shares of oil producers dropped to
intraday lows Monday on talk of a possible U.S. release of oil from
global crude reserves
(http://www.marketwatch.com/story/oil-price-drops-ahead-of-trump-putin-summit-2018-07-16)
and data from the International Monetary Fund showing a slowdown in
global economic growth.
Mining stocks struggled in the wake of Chinese figures on gross
domestic product in the second quarter. Quarterly growth in
China--the largest consumer of industrial metal copper--came in at
6.7%,
(http://www.marketwatch.com/story/china-growth-slows-slightly-in-second-quarter-2018-07-16)
the slowest rate since the third quarter of 2016, as Beijing
continued efforts to rein in debt at financial institutions.
"The growth data may have been in line with economist
expectations, and above Beijing's own 6.5% target, but the risk is
that Asia's powerhouse slows even further should a U.S.-instigated
trade war gather momentum," said Accendo Markets analysts Mike van
Dulken and Artjom Hatsaturjants in a note.
Europe, China and the U.S. have a duty "not to start trade
wars," said European Council President Donald Tusk, who spoke on
Monday at a summit between European Union and Chinese officials in
Beijing. The U.S. government last week said it plans to expand its
tariffs against Chinese goods imported into the U.S. to $200
billion in products. President Donald Trump called the EU "a foe"
(http://www.marketwatch.com/story/trump-the-european-union-is-our-foe-2018-07-15)
of the U.S. in an interview with CBS Evening News that aired
Sunday.
Read: These are the retail brands that will be hurt most by
Chinese tariffs
(http://www.marketwatch.com/story/these-are-the-retail-brands-that-will-be-hurt-most-by-chinese-tariffs-2018-07-12)
Also:Here's when Americans will start feeling the pain from
escalating Trump-imposed tariffs
(http://www.marketwatch.com/story/heres-when-americans-will-start-feeling-the-pain-from-escalating-trump-imposed-tariffs-2018-07-11)
Also in focus on Monday will be fresh votes in the U.K. House of
Commons on amendments to the bill that will take the U.K. out of
the European Union. They will be the first votes on amendments
related to trade after U.K. Prime Minister Theresa May won support
for a soft-Brexit strategy from her cabinet when they met at
Chequers earlier this month. That strategy includes negotiating for
frictionless trade in goods between the U.K. and the EU.
But May's vision moving forward prompted resignations by cabinet
members David Davis and Boris Johnson, among others, and Monday's
votes face the prospect of rebellion by members of May's
Conservative Party. In an article published Monday in the Telegraph
newspaper
(https://www.telegraph.co.uk/politics/2018/07/15/rest-world-believes-britain-time-did/),
Johnson, who had served as Foreign Secretary, wrote that Britain
should "militate ceaselessly for free trade deals" and said Britain
needs to believe it can stand strong in a post-Brexit
environment.
Stock movers
Among miners, Glencore PLC (GLEN.LN) dropped 1.3%, BHP Billiton
PLC (BLT.LN) (BHP.AU) (BHP.AU) fell 2.5% and Antofagasta PLC
(ANTO.LN) gave up 0.7%.
In the oil sector, shares of Royal Dutch Shell PLC (RDSA.LN)
(RDSA.LN) fell 2.1% and BP PLC (BP.LN) (BP.LN) lost 2.3%.
Hargreaves Lansdown (HL.LN) fell 1.9% after the U.K. Financial
Conduct Authority
(https://www.fca.org.uk/publications/market-studies/ms17-1-investment-platforms-market-study)said
it is considering banning exit fees from online investment
platforms.
Micro Focus International PLC (MCRO.LN) lost 2.9% after Credit
Suisse reportedly cut its rating on the software maker.
Indivior PLC (INDV.LN) soared 17% on the midcap FTSE 250 index
after the drugmaker late Friday said it won a preliminary
injunction against Dr. Reddy's Laboratories Ltd
(http://www.marketwatch.com/story/indivior-wins-prelim-injunction-vs-dr-reddys-2018-07-16).
(500124.BY) (500124.BY) over a product that treats opioid
dependence.
(END) Dow Jones Newswires
July 16, 2018 12:19 ET (16:19 GMT)
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