FTSE steady as US China relations deteriorate further
Fiona Cincotta October 9, 2019 10:09 AM
The FTSE is trading higher for the moment as the tensions between the US and China intensify
The FTSE is trading higher for the moment as the tensions between the US and China intensify, but although the markets are for the moment partially ignoring the news flow it is just a matter of time before the implications of the latest set of decisions is felt in actual share price moves.
The US blacklisted 28 Chinese technology firms Monday - including artificial-intelligence companies - over China’s treatment of its Uighur Muslim minority. The US followed this up with visa restrictions against Chinese officials who are believed to be involved and is also now considering restricting the capital flowing into Chinese companies.
On the FTSE, companies focused on the domestic market are gaining ground after the pound firmed up a touch against the dollar - it is trading flat to the euro. ITV, BT and Associated British Foods are among the top gainers.
Sterling is trading higher on very slim hopes that the Prime Minister will be able to bring home some sort of viable Brexit proposal before the 19 October deadline when MPs will have a special sitting to decide the future of Brexit.
The dollar was weaker not only against the pound but also against the euro in reaction to the speech by Fed’s Jay Powell Tuesday who said that the Fed will start expanding its balance sheet again.
Brent crude is hovering just above $58 as the Sino-US tensions take their toll on market expectations of future demand.
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