FTSE 100 experiences worse day in three weeks
Fears about US-China trade talks stall European markets
European indices closed down following comments from Chinese officials about the possibility of a breakthrough in the Sino-American trade war.
Citing unnamed sources, Bloomberg reported that senior Chinese officials are sceptical about the possibility of a long-term trade deal and worry that US president Donald Trump could impulsively withdraw even from an interim agreement. Trump for his part maintained that the first stage of deal will soon be signed despite cancelled summit
The FTSE100 fell 1.12 per cent to 7248.38, its worst drop for the past three weeks, while the more UK-focused FTSE 250 closed down 0.47 per cent at 20021.50. Further pressure was applied to the FTSE by sterling rising solidly past $1.29 for first time in a number of days
The Pan-European EuroStoxx 50 index recovered from a somewhat dramatic drop earlier in the day to close down 0.44 per cent at 3604.41. The German DAX followed a similar path closing -0.34% at 12866.79.
Elsewhere Hong Kong officially entered into recession after months of mass unrest disrupted the economy. Nonetheless the Hang Sang index finished up +0.90 per cent at 26906.72.
Brent Crude Oil Futures continued yesterday’s downward trajectory trading down -0.74 per cent at $60.16 a barrel in later afternoon trading. WTI Crude Oil Futures dropped even further to $54.20 a barrel a fall of 1.56 per cent.
Bitcoin (BTC) remained unusually stable standing up at $9,262.62 in late afternoon trading.