London Markets: London markets shrug off U.S. Huawei ban

London markets largely shrugged off an effective U.S. ban on Huawei telecommunications equipment, highlighting the U.K. government’s comparatively benign stance.

How did markets perform?

The U.K.’s FTSE 100 UKX, +0.21%  climbed to 7,311.1, up 0.2%. It closed 0.8% higher on Wednesday.

The pound GBPUSD, -0.1790%  ticked lower by 0.1% to $1.2833. It declined 0.4% Wednesday.

What’s moving the markets?

In a further sign that U.S. President Donald Trump is committed to pressing China in trade negotiations, the president signed an executive order declaring a national emergency and imposing restrictions on the use of equipment from countries considered “foreign adversaries”. This has widely been taken as a move to target Huawei. The Chinese firm makes handsets as well as network infrastructure equipment that companies are eyeing for the rollout of 5G networks. Huawei has been placed on a list of entities engaged in activity contrary to U.S. interests, due to fears it could be used by the Chinese government as an espionage tool. The company denies it poses any threat. Earlier this month, an official report by the U.K. government suggested that Huawei’s equipment could be used in a limited fashion in the country’s 5G network.

In the U.K., Prime Minister Theresa May is under renewed pressure to set a date for her departure, as attempts to reach a cross party Brexit agreement infuriated backbench Conservative MPs. May will meet Thursday with a committee of Tory MPs who are expected to demand that she either set a date by the end of summer or they will move to oust her in June, though this would require a rule change.

Which stocks are active?

Miners climbed Thursday as analysts were bullish on the prospects for iron ore, which has been advancing since the start of the year. In January, an accident at a Vale mine in Brazil that caused the death of 230 people led to the company reducing supply, sending the price higher. Analysts at Jefferies saw the price remaining elevated based on limited supply and demand from China. Shares in Anglo American PLC AAL, +2.89%  rose 2.9% BHP Group PLC BHP, +2.86%  climbed 2.6% and Rio Tinto PLC RIO, +2.50%  also increased 2.6%.

Burberry Group PLC BRBY, -4.71%  sank 3.7% after reporting mediocre full-year sales. Same-store sales rose only 2%, and pretax profit rose 6.8% below analysts’ expectations. The company appointed a new creative director last year in an effort to shift its strategy amid weak sales growth in the all-important Chinese market.

Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.

Filed in: Top News Tags: 

You might like:

An estimated 10.7 million Americans could miss work the Monday after the ‘Game of Thrones’ finale An estimated 10.7 million Americans could miss work the Monday after the ‘Game of Thrones’ finale
The Moneyist: My mom gave my sister $20,000 for her stem-cell treatment, I want her to deduct it from her inheritance The Moneyist: My mom gave my sister $20,000 for her stem-cell treatment, I want her to deduct it from her inheritance
The Wall Street Journal: OPEC considers two scenarios to adjust oil production The Wall Street Journal: OPEC considers two scenarios to adjust oil production
Biden pitches himself as a uniter even as he tears into Trump Biden pitches himself as a uniter even as he tears into Trump
A new theory on why sleeping less than 7 hours per night can lead to heart disease and Type 2 diabetes A new theory on why sleeping less than 7 hours per night can lead to heart disease and Type 2 diabetes
Economic Preview: There’s no recession in sight, but the U.S. economy appears stuck in second gear Economic Preview: There’s no recession in sight, but the U.S. economy appears stuck in second gear
NewsWatch: Crowd psychology says this ‘fool’s rally’ in stocks could fool bears NewsWatch: Crowd psychology says this ‘fool’s rally’ in stocks could fool bears
The Wall Street Journal: Students were advised to falsely claim to be racial minorities in college-admissions scandal The Wall Street Journal: Students were advised to falsely claim to be racial minorities in college-admissions scandal

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.