It has been a rough start to the week for equities, and the blue-chip FTSE index continues to lose ground and has declined 1.1% this week. In Tuesday’s North American session, the pair is at 7,293, down 0.68% on the day. In economic news, The U.K. releases BRC retail sales monitor, which is expected to gain 2.4% after two successive declines.
The FTSE has sparkled in the first four months of the year, soaring 10% during that time. The month of May has been a different story, declining 2.0%. On Sunday, U.S. President Donald Trump said that the U.S. would raise tariffs on $200 billion worth of Chinese goods as early as Friday, from 10% to 25%. This surprise move has sent shock waves through the markets as nervous investors wait and see if the unpredictable Trump will make good on his threat to punish China.
On Monday, things looked bleak, as Chinese officials said they would cancel the talks, but this turned out to be an empty threat. Chinese Vice Premier Liu He is scheduled to lead a Chinese delegation to Washington. Will the new U.S. tariffs be rescinded? Treasury Secretary Steve Munchin said that the tariffs could be cancelled when the talks resume. U.S. officials have said that a great deal of progress has been made, and if the talks resume, the market slide could prove to be temporary.
Tuesday (May 7)
- 4:00 British MPC Member Cunliffe Speaks
- 12:30 British MPC Member Haldane Speaks
- 19:01 British BRC Retail Sales Monitor. Estimate 2.4%
*All release times are DST
*Key events are in bold
FTSE, Tuesday, May 7 at 10:05 DST
Previous Close: 7,380 Open: 7,332 High: 7,373 Low: 7,288 Close: 7,297
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