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FTSE 100 sinks on new Trump tariff threat, bleak Chinese data

FTSE 100 sinks on new Trump tariff threat, bleak Chinese data
FILE PHOTO: A broker 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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(Reuters) – London’s main stock index sank almost 1% at opening on Friday after President Donald Trump’s threat of tariffs on Mexico and disappointing manufacturing data from China focussed minds back on the threat of a global downturn.

The FTSE 100 and the mid-cap FTSE 250 had both shed 0.8% by 0706 GMT and were on course for their first monthly falls this year.

Data on Friday showed China’s factory activity shrank more than expected in May, another stark reminder of the economic ramifications of the Sino-U.S. trade dispute.

London’s indexes of financial stocks and miners gave up 1% each, while heavyweight oil stocks also skidded.

Housebuilders also fell after mortgage lender Nationwide said British house price growth unexpectedly eased to its slowest rate in three months, shining a light on how lingering Brexit uncertainty is hitting consumer sentiment.

On the mid-cap index, Wizz Air stumbled despite forecasting net profit growth for the year ahead and saying it was well-placed to tackle higher fuel costs. Shares of the low cost carrier fell 4.5%.

(Reporting by Shashwat Awasthi in Bengaluru)

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