FTSE pulled down by general sell off
Fiona Cincotta November 14, 2019 5:03 AM
It was a choppy start to the morning in the London markets, with the FTSE down 0.45%. Globally markets are in negative mood this morning on the back of poor data from China which analysts now reckon is evidence that the trade war with the US is having an impact. Fixed asset investment in China is also now at its lowest level since it began to be formally tracked in 1996.
There was also a poor report out of Japan which drove the Nikkei down 0.8%.
In Europe there were also bearish economic data from Germany, which narrowly dodged a recession following its Q3 GDP data release. European traders did not like it and most European bourses are down this morning as a consequence.
Burberry surges on good H1 profits
Shares in Burberry Group are up over 5% this morning. The fashion firm said H1 profits were up by 5% versus the same period last year. This seems to have surprised investors who have become used to a string of bad numbers from fashion retailers. There are concerns that the riots in Hong Kong may be hitting Burberry sales for H2.
No progress on China talks hits confidence
The market has been waiting for some time now for concrete progress in the US-China trade talks. There had been hopes that the Trump administration would announce something this week but rumours in Washington indicate that talks have hit an impasse over farm purchases.
All this additional risk concern is feeding through into some safe haven buying in the currency market. Both the JPY and CHF are close to week highs versus the dollar. The USD is currently responding to any news of progress – or lack thereof – from the China talks which has become a major focal point for traders.
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