The FTSE 100 has risen ahead of expectations today, as it bounces back from a period of volatility caused by the tariff war between the US and China.
While the tensions have not been fully quelled, the implications of retaliatory tariffs have caused the culprits to take a breather; with technology, manufacturing and mining sectors suffering the immediate effects of tariffs, while high street retailers and the housing sector suffered the aftermath of depleted consumer confidence.
Today, with new revelations on the trade war running thin, markets across Europe have begun a recovery as liquidity has increased.
Fiona Cincotta, Senior Analyst at City Index, said, “Although the increasingly hostile trade relations between China and the US still form the backdrop for some of the equity trading this morning, for the moment the absence of news on this front is granting the market a brief chance to recover. European stock markets are moving gingerly higher this morning with the FTSE and the CAC both trading up 0.2% and the DAX up 0.4%. Strong earnings including from the likes of car maker Peugeot are helping the indices move higher.”
Since that comment, FTSE had risen 0.7 percent by midday and casualties of the tariff war, such as Airbus (LON:AIR), have rallied 1.05 percent since trading began.
FTSE large cap risers include Sky (LON:SKY), who are up 2.81 percent due to the bidding war between Fox and Comcast. Also, Capita (LON:CPI) are up 6.8 percent following the announcement of a new government contract and offload of its subsidiary, Park Eye.
Small cap risers include AFC Energy, who rallied 33.7 percent, and Xaar, who have rallied 6.1 percent.
