FTSE 100 watch: US-China trade talks fail to lift Footsie

on Jan 7, 2019
Updated: Mar 11, 2020

The UK benchmark index has fallen into the red this Monday, with investors shrugging off the trade talks between the US and China. In individual blue-chip movers, British Gas owner Centrica (LON:CNA) has fallen to the bottom of the FTSE 100 on the back of a rating downgrade at Jefferies.

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FTSE 100 retreats

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As of 12:43 GMT, the Footsie had given up 38.83 points to stand 0.57 percent lower at 6,798.59, giving up some of the gains posted in the previous session. Sentiment has been subdued despite the trade talks between the US and China which kicked off today.

“Given the lowish status of the actual trade talk participants […] I think markets are taking a more wait-and-see approach on this issue – which is by far the most important influence on global market direction in 2019,” said Chris Bailey, a Raymond James analyst, as quoted by Reuters, adding that the “UK specifically has the Brexit curveball to deal with too”. The comments came after Prime Minister Theresa May said yesterday that the UK would be in ‘uncharted territory’ should her Brexit deal be rejected by parliament later this month.

Individual movers

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Centrica has been the session’s biggest faller in percentage terms so far today after analysts at Jefferies trimmed their rating on the stock, noting that the British Gas owner’s dividend was ‘hanging by a thread’. The group’s shares are currently changing hands 4.66 percent lower at 130.90p.

HSBC Holdings (LON:HSBA) is also underperforming the broader market, following a downgrade at Citi to ‘sell’. HSBC’s share price is 2.17 percent worse off at 642.25p.

The FTSE 100 index was 0.46 percent down at 6,806.07 points as of 13:00 GMT on Monday, 07 January 2019.

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