It's possible US trade talks with China are influencing the UK benchmark index as they end without any real progress and a warning from experts that if it continues, the trade dispute could impact on global trade and markets.
As of 11.48 BST the FTSE is up marginally by 13.73 to 7576.75, a rise of 0.18 per cent.
According to Sky news today, the US and China have imposed further tariffs on an extra GBP12 billion of each other’s imported products, following last month’s hikes. China’s increase on tariffs came as a response to those of the US, with Beijing showing no signs of being cowed by Trump’s statements of intent. In an interesting move, China has stated its intention to file a complaint to the WTO, citing a perceived violation of the rules.
Impending impact on Market
In a related move, Trump has similarly instigated increased tariffs on imports from the EU: “The trade war risks significantly raising prices for consumers, while global stock markets, which have largely ignored Trump’s complaints as “bluster” and a negotiating ploy, are getting more jittery as nations retaliate.” (Sky News)
Powell to release statement
Following on from his vocal disagreement with the US Federal reserve earlier in the week, a statement is in the offing from Chairman Jerome Powell, which could see an impact on the markets as traders await his response to Trump’s criticism of their interest rate policy. The Fed has already alluded to two more hikes in interest rates designated for later in the year, regardless of perceived risk from trade conflicts and market volatility, according to Alliance News.
Decline in mortgage approvals
Elsewhere on the UK market, the big news this morning is the decline in mortgage approvals during July, from 40,330 approvals in June, down to 40,650 in contrast to a predicted rise and with gross mortgage lending which was around 7.6% up on last year. As quoted by Alliance News, UK Finance director Peter Tyler gave this response: “July saw steady growth in gross mortgage lending, driven largely by remortgaging as homeowners locked into attractive deals in anticipation of the recent base rate rise.” However he did warn that the future looked mixed for the market due to the impact of rising inflation on household incomes.
UBS have raised the share price target for CRH to 3200 pence (Buy) following a healthy six month report and prediction for future growth. CRH shares are currently standing at 2602.00, up 15.00 (0.58%) as of BST 12.13
RBS have raised Antofagasta to a target of 950 pence, currently trading at 829.00, up 24.00 (2.98%) as of BST 12.12