The UK benchmark index has started the week on the back foot, pressured by the ongoing trade tensions between the US and China. Micro Focus (LON:MCRO) is one of the FTSE 100’s biggest fallers with the spat hitting the technology sector.
FTSE 100 starts week lower
As of 12:23 BST, the Footsie had given up 96.47 points to stand 1.26 percent lower at 7,585.80. The blue-chip index has come under pressure after US President Donald Trump called on other countries to end all trade barriers or face a new round of retaliatory measures.
“It does seem to us that the time has probably come whereby all things very exposed to global trade flows will begin to underperform perhaps quite sharply,” wrote Neil Campling, co-head of the global thematic group at Mirabaud Securities, as quoted by Reuters.
Micro Focus leads fallers
Micro Focus’ share price meanwhile has given up 4.99 percent to 1,296.00p, following a report in the Wall Street Journal that President Trump was planning to bar many Chinese companies from investing in the US technology firms, and block additional technology exports to Beijing.
“If the Treasury proposals, outlines of which were reported by the Wall Street Journal, are enacted, Beijing would have little choice but to react in kind,” Ken Odeluga, market analyst at City Index, commented, as quoted by the Guardian.
Miners are also weighing on the blue-chip index, with Anglo American (LON:AAL) currently leading the sector lower, having given up 2.96 percent to 1,646.80p so far today. Reuters quoted Mike van Dulken and Artjom Hatsaturjants at Accendo Markets as pointing to “weaker commodities providing a hindrance to FTSE Energy and Mining names”.
The FTSE 100 index was 1.34 percent down at 7,579.59 points as of 12:52 BST on Monday, 25 June 2018.