FTSE higher on Wall Street gains
London shares are living off the glory of Wall Street this morning after US indices closed at record levels and the S&P nudged the key 3,000 level.
The DAX is also higher but less than the FTSE, weighed down by a profit warning by Daimler as the firm had to make further provisions to deal with a regulatory crackdown on its diesel emissions. DAX shares slipped 1.87% and also spilled into London trading hitting mainly the FTSE 100-listed Auto Trader Group. However, at the very bottom of the index was insurance firm Hiscox which lost nearly 5% in early trade having warned the market that last year’s disasters will affect profits.
Chinese trade data a double-edge sword
Chinese trade data surprised investors with an 11% increase in the trade surplus with the US in June, unexpected at a time when the trade tensions between the two countries are still rising. The data will be a double-edged sword for the market. On the one hand it will work towards the economic growth in China on which many Western markets depend for their own expansion but at the same time will only intensify the friction with the US because the issue of the massive surplus is the original cause of their trade dispute.
Brent nudges higher ahead of Barry
Brent crude is almost a full 1% higher this morning as the market braces itself for the tropical storm Barry to reach Louisiana this weekend, expected to become a grade three hurricane when it hits land. Although Barry’s strength is on the lower end oil producers have already closed down some production which has affected the immediate oil price. But given that the shutdowns are only temporary, once the Gulf rigs are up and running again the oil prices could also decline.
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