By Dave Morris
London markets were in a slump as the latest U.S. dispute with a foreign power, Mexico, exacerbated jitters over the health of the global economy.
How did markets perform?
The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.04% moved down 1% to 7,146.6. On Thursday, it climbed 0.5%.
The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0498% dipped 0.2% to $1.2585, adding to Thursday’s 0.3% downward move.
Oil prices continued to fall Friday on fears of slowing global growth. The West Texas Intermediate (WTI) crude oil benchmark was down 0.9% Friday to $56.07/bbl. The Brent crude benchmark lost 1.1% Friday, moving down to $64.60/bbl.
What’s moving the markets?
U.S. President Donald Trump piled more tariffs on his trading partners, this time slapping a 5% fee on imports from Mexico and said it could rise to 15% unless the flow of illegal immigration coming through the country is stopped. The administration is in the midst of attempting to build a border wall despite opposition in the courts, and is also locked in a trade dispute with China.
Perceived weakness in the global economy has hit the price of oil, despite supply constraints organized by the Organization of the Petroleum Exporting Countries (OPEC) and others such as Russia. U.S. crude oil inventories shrank by 300,000 barrels, according to the Energy Information Administration, versus S&P Global Platts’ expectations that they would shrink by 1.4 million barrels, on average.
In economic data, China’s purchasing manager index (PMI) manufacturing figures for May showed a contraction in activity of 49.4, lower than the 49.9 reading economists had expected.
Which stocks are active?
Oil stocks were on the losing side of the market. Premier Oil PLC slumped 7.1%, John Wood Group PLC /zigman2/quotes/203993058/delayed UK:WG +0.21% was down 4.4% and Tullow Oil PLC /zigman2/quotes/205079109/delayed UK:TLW +2.60% fell 3.6%.
Budget airline Wizz Air Holdings PLC /zigman2/quotes/210449062/delayed UK:WIZZ +0.35% shares fell 3.4% after it missed on earnings. Full year revenue was £1.707 billion, versus expectations of £1.712 billion.