The UK benchmark index has fallen deep into the red at the start of the new quarter, with investors continuing to focus on global trade tensions. In individual movers, Micro Focus (LON:MCRO) has soared to the top of the FTSE 100 leaderboard after announcing a deal to divest its SUSE software business.
FTSE 100 heads south
As of 12:09 BST, Britain’s blue-chip index had given up 79.10 points to stand 1.04 percent lower at 7,557.83. The Footsie has started the new quarter on the back foot, with the US set to impose $34 billion of tariffs on Chinese exports later in the week.
“Until Trump actually does strike some sort of deal, most importantly with China, that draws a line under the trade uncertainty for the time being, I think it’s going to be front and centre,” said Jasper Lawler, head of research at London Capital Group, referring to global trade, as quoted by Reuters. “Clearly there are some bargains to be picked up in emerging markets, in some mining stocks […] in the FTSE have been pretty beaten up.”
Individual Footsie movers
Micro Focus has been one of today’s most prominent Footsie risers after inking a deal to sell its SUSE business for $2.54 billion and signalling that some of the proceeds could be returned to shareholders. Micro Focus’ shares are changing hands 4.80 percent higher at 1,387.00p.
Tesco (LON:TSCO) is also outperforming the broader UK market, after announcing that it had agreed a long-term partnership with France’s Carrefour. The grocer’s stock is 0.15 percent better off at 257.09p.
The FTSE 100 index was 0.92 percent down at 7,566.54 points as of 12:22 BST on Monday, 02 July 2018.