Investors nervous amid US-China trade war talk
The FTSE 100 has opened up this morning, defying fears of that a looming US-China trade war would dampen investor appetite.
The index of leading shares was up 0.8% at 7,662 at the opening of the session.
China’s stock markets fell again overning as the prospect of a trade war with the US showed no sign of easing.
The Shanghai Composite Index was 0.6% lower, a day after falling 3.8% to a two-year low. The latest fall came despite big share purchases by shareholders in 30 listed firms and the state media expressing confidence in the country’s stock markets.
President Trump has threatened to impose a 10% tariff on $200 billion of Chinese goods after Beijing decided to raise tariffs on $50 billion of US imports.
Mr Trump’s policy is designed to protect US industry but the tit-for-tat is causing worries over rising costs, stoking inflation and fears that the policy will backfire.
Other Asian markets managed a modest bounce. Japan’s Nikkei was up 0.1% after earlier falling into negative territory. South Korea’s KOSPI rose 1%.