The UK benchmark index has climbed higher in today’s session, steadying following the previous session’s hefty selloff. Glencore (LON:GLEN), however, is proving a drag on the index after disclosing that it had received a subpoena from the US Department of Justice (DoJ).
FTSE 100 steadies
As of 12:21 BST, the Footsie had added 47.18 points to stand 0.63 percent higher at 7,595.03. The blue-chip index has advanced in the wake of yesterday’s selloff prompted by anticipation of US tariffs on China later this week.
“Granted some (investors) remain nervous on the outlook for Brexit and the overall impact of US policy but we see this as an opportunity to gain exposure as the recent drop was not a true reflection of equity asset prices,” Atif Latif, director of trading at Guardian Stockbrokers, told Reuters.
Chris Beauchamp, market analyst at IG, meanwhile commented that the FTSE 100’s last week low of 7,494 was one area of possible support, while a close above 7,710 points was “needed to break the sequence of lower highs that has been in place since the May all-time high”.
In individual stock news, shares in Glencore have been sold off after the commodities giant disclosed that it had received a subpoena dated July 2 from the US DoJ to produce documents and other records related to compliance with the Foreign Corrupt Practices Act and US money laundering statutes. The group’s shares are currently changing hands 9.79 percent in the red at 315.10p, having fallen more than 11 percent earlier in the session.
Micro Focus (LON:MCRO), whose shares rallied yesterday after the company announced the disposal of its SUSE business, has been another prominent faller in today’s trading. Micro Focus’ share price 4.28 percent worse off at 1,286.00p.
The FTSE 100 was 0.68 percent higher at 7,599.39 points as of 12:45 BST on Tuesday, 03 July 2018.