LONDON MARKETS: London Markets Up Despite U.K. Construction Woes
02 Juli 2019 - 12:15PM
Dow Jones News
By Dave Morris
London markets advanced despite the U.K.'s weakest construction
activity figure since April 2009.
How did markets perform?
The U.K.'s FTSE 100 increased 0.5% to 7,535.1, adding to
Monday's move up 1%.
The pound retreated 0.3% to $1.2610, after falling 0.6%
Monday.
What's moving the market?
The Office of the U.S. Trade Representative added another 89
items to the list
(https://www.wsj.com/articles/u-s-proposes-more-european-tariffs-pending-airbus-case-11562026415)
of products from the European Union that could become subject to
tariffs. The World Trade Organization is currently hearing a case
against Airbus SE (AIR.FR) over whether it violated
anti-protectionist rules around receiving government support. The
new items bring the potential annual cost of the U.S. tariffs to
approximately $21 billion a year.
The G-20's jolt of optimism around U.S.-China trade was tempered
Tuesday as investors weighed the likelihood of an actual
breakthrough. An official commentary by Chinese state media outlet
Xinhua
(http://www.xinhuanet.com/english/2019-07/01/c_138189987.htm)
included a statement noting that the agreement to resume talks does
not necessarily mean a deal to end the trade tension is
imminent.
In economic data, the U.K. saw a sizable miss in the IHS Markit
construction purchasing managers index (PMI) survey for June,
coming in at 43.1 versus 49.3 predicted in a Thomson Reuters poll
of economists. Brexit uncertainty was widely cited as a key factor
in the weak figure, which is the lowest since April 2009.
Which stocks are active?
Jupiter Fund Management PLC (JUP.LN) shares dropped 7% following
the asset management firm's announcement that one of its top fund
managers, Alexander Darwall, had set in motion plans to launch his
own firm
(https://www.fnlondon.com/articles/jupiters-european-star-manager-will-quit-to-launch-own-business-20190701)
pending approval from British regulators.
Funding Circle Holdings PLC (FCH.LN) shares plummeted 18% when
the online small-business loans platform issued guidance that it
was downgrading its expectations for full year revenue growth
(https://www.fnlondon.com/articles/funding-circle-stock-tanks-as-company-cuts-revenue-target-20190702).
The young company, whose shares are down nearly 66% since their
initial public offering in 2018, said it had applied more stringent
guidelines on lending to higher-risk clients due to rising economic
uncertainty.
(END) Dow Jones Newswires
July 02, 2019 06:00 ET (10:00 GMT)
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