LONDON MARKETS: London Markets Shrug Off U.S. Huawei Ban
16 Mai 2019 - 12:39PM
Dow Jones News
By Dave Morris
London markets largely shrugged off an effective U.S. ban on
Huawei telecommunications equipment, highlighting the U.K.
government's comparatively benign stance.
How did markets perform?
The U.K.'s FTSE 100 climbed to 7,311.1, up 0.2%. It closed 0.8%
higher on Wednesday.
The pound ticked lower by 0.1% to $1.2833. It declined 0.4%
Wednesday.
What's moving the markets?
In a further sign that U.S. President Donald Trump is committed
to pressing China in trade negotiations, the president signed an
executive order
(http://www.marketwatch.com/story/trump-targets-huawei-in-move-to-ban-foreign-telecom-equipment-2019-05-15)declaring
a national emergency and imposing restrictions on the use of
equipment from countries considered "foreign adversaries". This has
widely been taken as a move to target Huawei. The Chinese firm
makes handsets as well as network infrastructure equipment that
companies are eyeing for the rollout of 5G networks. Huawei has
been placed on a list of entities engaged in activity contrary to
U.S. interests, due to fears it could be used by the Chinese
government as an espionage tool. The company denies it poses any
threat. Earlier this month, an official report by the U.K.
government suggested that Huawei's equipment could be used in a
limited fashion in the country's 5G network.
In the U.K., Prime Minister Theresa May is under renewed
pressure
(http://www.marketwatch.com/story/brexit-brief-make-or-break-moment-for-mays-leadership-as-uk-approaches-vote-on-deal-2019-05-16)
to set a date for her departure, as attempts to reach a cross party
Brexit agreement infuriated backbench Conservative MPs. May will
meet Thursday with a committee of Tory MPs who are expected to
demand that she either set a date by the end of summer or they will
move to oust her in June, though this would require a rule
change.
Which stocks are active?
Miners climbed Thursday as analysts were bullish on the
prospects for iron ore, which has been advancing since the start of
the year. In January, an accident at a Vale mine in Brazil that
caused the death of 230 people led to the company reducing supply,
sending the price higher. Analysts at Jefferies saw the price
remaining elevated based on limited supply and demand from China.
Shares in Anglo American PLC (AAL.LN) rose 2.9% BHP Group PLC
(BHP.LN) climbed 2.6% and Rio Tinto PLC (RIO.LN) also increased
2.6%.
Burberry Group PLC (BRBY.LN) sank 3.7% after reporting mediocre
full-year sales. Same-store sales rose only 2%, and pretax profit
rose 6.8% below analysts' expectations. The company appointed a new
creative director last year in an effort to shift its strategy amid
weak sales growth in the all-important Chinese market.
(END) Dow Jones Newswires
May 16, 2019 06:24 ET (10:24 GMT)
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