Indices

FTSE 100 watch: Political and economic worries pressure Footsie

The FTSE 100 has fallen deep into the red in London in today’s session, pressured by worries over the trade relations between the US and China and with UK political worries returning to further weigh on sentiment. On the corporate front, investors are digesting results by United Utilities (LON:UU) and Intertek (LON:ITRK).

FTSE 100 under pressure

As of 14:34 BST, the Footsie had given up 98.98 points to stand 1.35 percent lower at 7,235.21. Sentiment has been subdued in today’s session, pressured by ongoing concerns over the US-China relations after earlier in the week, Washington moved to place China’s Huawei on a trade blacklist last week.

“Without a clear way forward during an intensifying 2020 US presidential election, we see a rising risk that tariffs will remain in effect through end 2020,” Reuters quoted analysts at Nomura as commenting in a note.

At home, Prime Minister Theresa May is facing calls to step down. The BBC reported that Commons leader Andrea Leadsom had quit the cabinet, saying that she no longer believed the government’s approach would deliver Brexit.

Individual blue-chip movers

In individual stock news, United Utilities is fractionally underperforming the main index as it reported that its operating profit had inched lower to £634.9 million. United Utilities’ share price is currently 1.61 percent worse off at 770.20p.

Intertek meanwhile posted a 5.3-percent rise in revenue for the four-month period until April 30 and said that it was on track to deliver its full-year targets. Proactive Investors, however, quoted UBS as commenting that the company’s organic growth had slowed slightly and that products might ‘be a cause for concern’ even if comparatives get easier through the rest of the year. Intertek’s shares are 1.43 percent worse off at 5,112.00p.

The FTSE 100 was 1.46 percent lower at 7,226.75 points as of 14:49 BST on Thursday, 23 May 2019.

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