FTSE dips as new tariff threats dampen sentiment
Fiona Cincotta December 3, 2019 10:29 AM
European indexes are trading higher but the FTSE is dipping, dragged down by mining companies. It has been tariff-threat galore in the last 24 hours with the US threatening to slap 100% tariffs on French champagne and other French products. Miners and metal firms attracted some unwanted investor attention after the US President decided to reinstate import tariffs on steel and aluminium imports from Argentina and Brazil, the two countries undermining his tough tactic on China by increasing their exports of soybeans and agricultural products to the country. The fallout was felt by all the London-listed miners with exposure to North America including Russian-owned Evraz and major trading firm Glencore.
On the upside, UK Black Friday sales numbers are gradually dripping in, showing high volumes and helping retailers and consumer orientated firms, notably JD Sports and Diageo.
Brent rises after yesterday’s plunge
Brent crude is a touch higher since opening but this comes after it plunged from a high of $62 yesterday to $60.9. With the OPEC show about to kick off Thursday and Friday a small piece of news about China’s plans to have 25% of electric vehicles on its roads by 2025 passed relatively unnoticed. Although it doesn’t mean a straight 25% decline in demand over the next five years because China’s car sales are still rising at a rapid rate, particularly large vehicles with high petrol consumption, the plan will start playing a role in overall Chinese demand and will be felt in the market.
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