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FTSE 100 watch: Footsie slides as US threatens new tariffs on China

The UK benchmark index has fallen deep into the red in today’s session, with the trade war between the US and China set to escalate. Investors are also focusing on a string of corporate releases, including Barratt Developments (LON:BDEV) trading update, which has pointed to strong full-year performance.

FTSE 100 falls into the red

As of 12:02 BST, the Footsie had lost 83.02 points to stand 1.08 percent lower at 7,609.02. Sentiment has been subdued today, with investors shunning riskier assets, as the US signalled plans to impose 10 percent tariffs on a list of $200 billion worth of Chinese imports. Reuters reported that China’s commerce ministry had said that it was ‘shocked’ and would complain to the World Trade Organisation, without immediately specifying how it would retaliate.

“The steady move higher in indices has been rudely interrupted, although the damage is not terminal,” Chris Beauchamp, market analyst at IG, commented in a note, adding that the next areas to watch for possible support for the FTSE 100 were 7,540 points, and then 7,490, while “a renewed push higher targets 7,706, with a close above here suggesting further bullish strength”.

Individual blue-chip movers

In individual movers, Barratt is outperforming the FTSE 100 reporting ‘strong financial and operational performance for the full year,’ as well as its highest level of completions in a decade. Barratt’s share price is 2.75 percent better off at 496.30p.

Burberry (LON:BRBY) meanwhile is three percent down at 2,038.00p after revealing that softer tourist demand had impacted its performance at home and in Continental Europe, and Micro Focus (LON:MCRO) has given up 12.26 percent to 1,143.68p as it revealed that it was running about a year behind its original plan for the integration of the HPE Software assets.

The FTSE 100 was 1.13 percent down at 7,604.74 points as of 12:33 BST on Wednesday, 11 July 2018.

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