LONDON MARKETS: British Stocks Fall As Political Risks Mount Across The Globe
13 August 2019 - 2:09PM
Dow Jones News
By Callum Keown
Investors flocked to safe haven assets on Tuesday as political
risks mounted across the globe, sending British stocks lower.
The FTSE 100 declined 0.6% and the more domestically-focused FTSE 250 fell 0.4%.
Sterling made slight gains after U.K. wage growth hit its
highest level for 11 years, but no-deal Brexit fears continued to
blight the currency.
What's moving the markets?
Markets remained nervous over the fragile state of relations
between the U.S. and China and the threat of further escalation of
the trade war.
Continued protests in Hong Kong, political uncertainty in
Argentina, and no-deal Brexit fears formed an unpleasant cocktail
for investors, who moved away from riskier assets towards
havens.
Singapore downgraded its GDP growth forecast due to the impact
of the trade war and German economic sentiment plunged in August.
The German ZEW expectations index for investor confidence dropped
to -44.1, the lowest since the euro crisis in 2011.
British stocks declined on Tuesday morning as investors took
cover in safe haven assets -- the yield on the U.K. 10-year gilt
dropped to fresh lows of 0.46% and the price of gold rose above
$1,500 per ounce.
David Madden, CMC Markets analyst, said: "Every corner of the
global has negative news hanging over it, and that is why traders
are trimming their equity positions."
U.K. wage growth picked up to 3.9% in the year to June, the
highest rate for 11 years, but still failed to wake the pound from
its slumber as no-deal Brexit fears remained.
Which stocks are active?
Travel operator Tui rose 0.6% as the company stuck to its
full-year guidance despite warning the grounding of Boeing 737 Max
could cost it up to EUR300 million
(http://www.marketwatch.com/story/tui-profit-drops-by-85-hit-by-737-max-grounding-2019-08-13)($336
million). The firm posted a EUR103.9 million loss in its markets
and airlines business in the third quarter, compared with a EUR37.2
million profit the previous year.
Rolls-Royce (RR.LN) fell 2.6% after rating agency Moody's
downgraded the jet engine maker over cash flow and debt concerns.
Moody's also cited the high cost of rectifying long-running
problems with its Trent 1000 engines.
(END) Dow Jones Newswires
August 13, 2019 07:54 ET (11:54 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Tui (TG:TUI1)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Tui (TG:TUI1)
Historical Stock Chart
Von Apr 2023 bis Apr 2024