Today's Closing Update

U.S.Stocks were lower as the U.S.-China trade dispute intensified. President Donald Trump announced tariffs on $50 billion worth of Chinese imports prompting Beijing to vow immediate retaliation.

 

European Stocks failed to climb higher as investors paused for breath after a stellar rally in the previous session fueled by the European Central Bank (ECB).

 

U.S. President Donald Trump announced hefty tariffs on $50bn (£37.7bn) of Chinese imports as Beijing threatened to respond in kind, in a move that looks set to ignite a trade war between the world’s two largest economies. Trump, whose hardline stance on trade has seen him wrangle with allies, said in a statement that a 25% tariff would be imposed on a list of strategically important imports from China. He also vowed further measures if Beijing struck back.

 

An East Yorkshire factory has won a £1.5bn contract to build new Tube trains for London Underground. Transport for London said the 94 trains will be designed and built by Siemens Mobility at its planned £200m facility in Goole. The new trains are expected to start running on the Piccadilly Line from 2023. Siemens Mobility’s chief executive Sabrina Soussan said she was “thrilled by today’s announcement”.

 

Rolls-Royce said it would exceed it’s 2020 guidance as it announced new ambitious mid-term goals, sending its shares to four-year highs and reflecting investor faith that CEO Warren East can transform Britain’s best-known engineering firm. The maker of engines for civil planes, military jets and ships have been in turnaround mode since 2015.

 

H&M reported no sales growth for a full six months, as the world’s second-largest fashion retailer struggles to get customers through its doors and loses further ground to rival Inditex. H&M said local-currency sales in the March-May period were unchanged from the same period a year ago, the second quarter of no growth and below the 0.5% increase expected by analysts. Quarterly net sales rose 1% to 52.0bn crowns (£4.4bn), below expectations for a 3% rise.

 

Oil Prices fell ahead of an OPEC meeting in Vienna next week as two of the world’s biggest producers, Saudi Arabia and Russia, indicated they were prepared to increase output.

 

Gold Prices dropped, on track to mark their lowest finish of the year just a day after settling at their highest in about month, as the benchmark U.S. dollar index touched an 11-month high, weighing on assets pegged to the monetary unit.

Market Close

UK 100 7,633.9 -131.9 -1.7%
UK 250 21,005.5 -318.5 +1.5%
GER 30 13,010.6 -96.6 -0.7%
FRA 40 5,501.9 -26.6 -0.5%
U.S. 30 24,954.16 -221.15 -0.9%
U.S. 500 2,767.39 -15.10 -0.5%
OIL (BRENT) 73.25 -2.69% -3.5%
GOLD 1,278.11 -24.14 -1.9%

UK Risers & Fallers

Rolls Royce 950 +67.2 +7.6%
Tesco 254.8 +5 +2.0%
Petra Diamonds 66.45 +8 +13.5%
Old Mutual 215.5 -11.4 -5.0%
DCC 6905 -345 -4.8%
Indivior 358.3 -134 -27.1%

Reported Economic Data

Time/Date Previous Forecast Outcome
10.00am: European Final CPI y/y 1.9% 1.9% 1.9%
1.30pm Empire State Manufacturing Index 20.1 19.1 25.0

 

Sources:

 

https://uk.reuters.com/article/uk-usa-trade-china-ministry/china-promises-fast-response-as-trump-readies-tariffs-idUKKBN1JB0U2

https://uk.reuters.com/article/uk-global-oil/oil-falls-as-focus-moves-to-prospect-of-higher-supply-idUKKBN1JB02S?il=0

https://uk.reuters.com/article/us-rolls-royce-hldg-outlook/rolls-royce-takes-wing-as-ceo-sets-ambitious-goals-idUKKBN1JB0J4

https://www.bbc.co.uk/news/uk-england-humber-44496526

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1529063791293630900.html

 

 

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