LONDON MARKETS: FTSE 100 Struggles After Trump Signs Tariff Order
March 09 2018 - 3:41AM
Dow Jones News
By Carla Mozee, MarketWatch
London benchmark on track for weekly win; U.S. jobs report
ahead
Blue-chip stocks in the U.K. were struggling Friday to keep up a
run of wins, as mining shares grappled with the prospect of U.S.
tariffs on steel imports. But the London benchmark is still on
track to rise for the week.
The moves came ahead of the monthly U.S. jobs figures, a widely
watched report used to gauge the health of the labor market in the
world's largest economy.
How markets are moving
The FTSE 100 index fell 0.1% to 7,194.87. On Thursday, the
benchmark rose 0.6%
(http://www.marketwatch.com/story/european-stocks-rise-for-4th-day-in-a-row-as-ecb-steals-focus-from-us-tariffs-2018-03-08)
and marked a fourth straight day of gains. For the week, the FTSE
100 was on course to rise 1.9%, which would be the first weekly win
in three weeks.
The pound bought $1.3815, little changed from $1.3812 late
Thursday in New York.
What's driving markets
Mining shares are moving slightly higher after U.S. President
Donald Trump late Thursday signed a decree to impose tariffs of 25%
on imported steel and 10% on aluminum. But Canada and Mexico were
exempted from the levies as the U.S. attempts to renegotiate the
North American Free Trade Agreement, while other countries are
negotiating exclusions.
Read:EU lines up its salvos to fight Trump tariffs
(http://www.marketwatch.com/story/eu-lines-up-its-salvos-to-fight-trump-tariffs-2018-03-08)
European Union Trade Commissioner Cecilia Malmstrom on Friday at
a forum in Brussels said the bloc is working on being excluded from
the tariffs, which go into effect March 23.
"We hope we can get confirmation that the EU is excluded from
this," she said, adding that while the EU shares concerns of
overcapacity in the steel markets, "this isn't the right way" to
deal with the issue.
See:ECB's Draghi: 'If you put tariffs against your allies, one
wonders who the enemies are'
(http://www.marketwatch.com/story/ecbs-mario-draghi-if-you-put-tariffs-against-your-allies-one-wonders-who-the-enemies-are-2018-03-08)
And check out: EU leader responds to Trump's tariff plan: 'We
can also do stupid'
(http://www.marketwatch.com/story/eu-leader-responds-to-trumps-tariff-plan-we-can-also-do-stupid-2018-03-07)
The pound was steady against the dollar, but could see more
action after the release of the U.S. nonfarm payrolls report for
February
(http://www.marketwatch.com/story/are-workers-really-getting-a-raise-wages-are-focus-of-upcoming-us-jobs-report-2018-03-08),
due at 1:30 p.m. London time, or 8:30 a.m. Eastern Time. Wage
growth will be in focus. Analysts are expecting the U.S. added
220,000 new jobs last month.
Figures on industrial production and construction output in the
U.K. for January are due at 9:30 a.m. London time.
What strategists are saying
-- "Despite a 24-hour period stuffed with international
developments, the markets avoiding any drastic movements this
Friday," said Spreadex financial analyst Connor Campbell.
"Perhaps it's because investors are caught between Donald Trump
signing an order dictating tariffs on metal imports -- but one with
room for country-by-country exceptions -- and the news that the
president is set to meet Kim Jong Un for an unprecedented summit.
It appears that the former is informing trading more than the
latter," Campbell said in a note.
-- "We retain a positive outlook on the mining sector, supported
by a robust macroeconomic backdrop, albeit one currently being
tested by President Trump's attempts at protectionist trade
policies," said Investec analyst Hunter Hillcoat in a note.
Stock movers
In the mining group, iron ore producers Rio Tinto PLC (RIO)
(RIO) (RIO) and BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) fell
0.6% and 0.3%, respectively, and Antofagasta PLC (ANTO.LN) lost
0.5%.
But copper miner Fresnillo PLC (FRES.LN) turned up to trade 0.3%
higher and Randgold Resources PLC (RRS.LN) gained 0.2%.
Investec upgraded Anglo American PLC (AAL.LN) and Glencore PLC
(GLEN.LN) to buy from hold. Shares were up 0.5% and 0.2%,
respectively.
Topping advancers, NMC Health PLC (NMC.LN) rose 3.5%.
(END) Dow Jones Newswires
March 09, 2018 04:26 ET (09:26 GMT)
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