FTSE inches ahead, Russia-exposed stocks tumble
Article by: Reuters
Source link: Click here
Mainstream publications featured in:
- Daily Mail
- This Is Money
- Yahoo Finance
- The Investment Observer
- New York Times
LONDON (Reuters) - Worries over global trade tensions took a backseat as Britain’s top share index advanced on Monday, though stocks exposed to Russia fell after a fresh round of U.S. sanctions.
Last week global risk assets were hit by the prospect of a full-blown trade war after the United States and China threatened each other with tens of billions of dollars worth of tariffs.
Those fears eased after U.S. President Donald Trump predicted on Sunday there would be concessions from China. But a fresh round of U.S. sanctions on Russian businessmen hit shares in several Russia-exposed companies on the FTSE.
Shares in Jersey-based EN+ Group (ENPLq.L), which manages the assets of tycoon Oleg Deripaska, dropped 27.5 percent.
“Glencore and the miners will definitely be (down) as a result of the Russian situation. If we see further escalations, we might look to go a little bit more bearish on these particular stocks in these particular sectors,” Jasper Reimers, senior analyst at Vertex Capital Group, said.
“At this stage, there’s no major concern - I don’t think there are any major escalations just yet.”
Shares in Rolls Royce (RR.L) were the biggest gainers, up around 1.7 percent after the company agree to sell parts maker L’Orange to U.S.-based engineering company Woodward Inc (WWD.O) for 700 million euros (£609.2 million), as part of a plan to simplify its business.
“As well as providing a healthy boost to the balance sheet, it suggests chief executive Warren East is not sitting on his hands despite reporting good progress on a transformation of the business at last month’s full year results,” Russ Mould, AJ Bell investment director, said in a note.