BREAKING NEWS

BREAKING NEWS

U.S.-China trade tensions haunt London's FTSE 100

U.S.-China trade tensions haunt London's FTSE 100
FILE PHOTO: Traders looks at financial information on computer screens on the IG Index trading floor in London, Britain February 6, 2018. REUTERS/Simon Dawson -
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SIMON DAWSON(Reuters)
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(Reuters) - UK blue-chip shares fell back to six-week lows on Thursday, pressured by renewed trade tensions between the United States and China, while insurer RSA advanced after a trading update.

The FTSE 100, which draws more than two-thirds of its earnings from abroad, was 0.5 percent lower by 0723 GMT. The midcaps gave up 0.6 percent.

Industrials, miners and Asia-exposed stocks led the fall on the main index after U.S. President Donald Trump accused China of breaking the deal they had reached in trade talks.

Energy supplier Centrica, oil heavyweight BP and insurer Admiral all dipped as they traded ex-dividend, heavily weighing on the blue-chip bourse.

Luxury brand Burberry, which is vulnerable to a hit to the Asian economy, gave up 2 percent.

All but two sectors were in the negative territory by 0712 GMT, although an upbeat first-quarter update showing a rise in net written premiums helped insurer RSA inch 1.4 percent higher.

Another gainer was Ocado with a 1.1 percent rise after it tweaked the terms of its deal with Morrisons and said it bought a minority stake in robotics start-up Karakuri.

Small-cap Superdry dropped as much as 7 percent after the fashion retailer warned on profit again, even as as founder Julian Dunkerton works to revamp the brand.

(Reporting by Muvija M in Bengaluru; Editing by Gareth Jones)

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