🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UPDATE 2-UK stocks end lower on Sino-U.S. tensions, but mark monthly gains

Published 05/29/2020, 04:09 PM
Updated 05/30/2020, 12:20 AM
© Reuters.
UK100
-
RR
-
SHI
-
FTMC
-
FTNMX502010
-
FTNMX301010
-
FTNMX405010
-
FTNMX402040
-

* Rolls-Royce bottoms out FTSE 100 after S&P cuts to junk
* Investors await Trump news conference on China
* Discount retailer B&M rises on upbeat trading update
* FTSE 100, FTSE 250 gain for the month

(Adds details, updates to close)
By Sagarika Jaisinghani and Ambar Warrick
May 29 (Reuters) - UK shares ended lower on Friday as fears
of Washington's response to Beijing tightening its control over
Hong Kong tempered optimism over an eventual economic recovery
from the coronavirus crisis.
The blue-chip FTSE 100 .FTSE was down 2.3% with travel
.FTNMX5750 stocks serving as the top decliners, while the
mid-cap FTSE 250 .FTMC shed 1.7% to snap a nine-day winning
streak.
Still, the two indexes gained for the month as investors
continued to bet on a bounceback in economic growth from the
coronavirus.
Optimism over the reopening of a bulk of the British economy
next month saw the domestically inclined FTSE 250 marking its
best two-month rise since 2009.
For the day, bank stocks .FTNMX8350 tracked a decline in
gilt yields as investors fled to perceived safe havens ahead of
U.S. President Donald Trump's news conference on China's move to
impose a national security law on Hong Kong that has raised
concerns over its function as a global finance hub. "Global equities had been willing to look past the risk of
escalating U.S.-China tensions over recent weeks because the
threats had largely been confined to mere sabre-rattling," wrote
Han Tan, market analyst at FXTM.
"That Trump rhetoric is set to evolve into actual policies,
potentially in the form of sanctions, which could shatter the
stability that the world sorely needs in these early days of the
post-pandemic era."
The threat of a renewed U.S.-China trade war has stymied a
wider stock market rally, which had seen the FTSE climbing about
26% since mid-March, after crashing more than 36% from a January
record high.
Rolls-Royce RR.L tumbled nearly 15% to the bottom of the
FTSE 100 as Standard & Poor's cut its credit rating to junk on
the disruption to global air travel from the COVID-19 pandemic.

Discount retailer B&M BMEB.L rose 5.5% after an upbeat
trading update, while building materials supplier SIG Plc
SHI.L gained 4.3% on plans to raise 150 million pounds
($185.12 million) in new equity.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.