London markets advanced despite the U.K.’s weakest construction activity figure since April 2009.
How did markets perform?
The U.K.’s FTSE 100 UKX, +0.64% increased 0.5% to 7,535.1, adding to Monday’s move up 1%.
The pound GBPUSD, -0.1266% retreated 0.3% to $1.2610, after falling 0.6% Monday.
What’s moving the market?
The Office of the U.S. Trade Representative added another 89 items to the list of products from the European Union that could become subject to tariffs. The World Trade Organization is currently hearing a case against Airbus SE AIR, -0.63% over whether it violated anti-protectionist rules around receiving government support. The new items bring the potential annual cost of the U.S. tariffs to approximately $21 billion a year.
The G-20’s jolt of optimism around U.S.-China trade was tempered Tuesday as investors weighed the likelihood of an actual breakthrough. An official commentary by Chinese state media outlet Xinhua included a statement noting that the agreement to resume talks does not necessarily mean a deal to end the trade tension is imminent.
In economic data, the U.K. saw a sizable miss in the IHS Markit construction purchasing managers index (PMI) survey for June, coming in at 43.1 versus 49.3 predicted in a Thomson Reuters poll of economists. Brexit uncertainty was widely cited as a key factor in the weak figure, which is the lowest since April 2009.
Which stocks are active?
Jupiter Fund Management PLC JUP, -6.87% shares dropped 7% following the asset management firm’s announcement that one of its top fund managers, Alexander Darwall, had set in motion plans to launch his own firm pending approval from British regulators.
Funding Circle Holdings PLC FCH, -17.79% shares plummeted 18% when the online small-business loans platform issued guidance that it was downgrading its expectations for full year revenue growth. The young company, whose shares are down nearly 66% since their initial public offering in 2018, said it had applied more stringent guidelines on lending to higher-risk clients due to rising economic uncertainty.
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