FTSE Steady As U.S.-China Relations Deteriorate Further

FTSE Steady As U.S.-China Relations Deteriorate Further

The FTSE is trading higher for the moment as the tensions between the U.S. 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 (LON:ITV), BT and Associated British Foods (LON:ABF) 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.

FTSE Steady As U.S.-China Relations Deteriorate Further

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.