The FTSE index has plunged in the Wednesday session. Currently, the FTSE index is trading at 7,185, down 1.15% on the day. There are no British events on the calendar. On Wednesday, the U.S. releases second estimate GDP for the first quarter.
Reports that China has raised the ante in a bitter trade dispute have rocked global equity markets on Wednesday. Chinese media has reported that China is threatening to curb the supply of rate metals to the U.S. These products are used in the production of items such as cell phones and electric cars, so any interruption in supply could hurt U.S. technology companies. Technology company listings on the FTSE are down sharply – Micro Focus has declined 4.25% and Vodafone has fallen 1.82%. Investors remain jittery over escalating tensions between the U.S. and China, and this latest salvo from China has exacerbated risk apprehension.
The U.S. economy continues to perform well, and first-quarter economic growth is expected to remain above the 3% level. Preliminary GDP will be released on Thursday and is expected to post a healthy gain of 3.1%. In April, the initial release came in at 3.2%, easily beating the estimate of 2.2%. If the revised reading also beats expectations, risk appetite could improve and boost the FTSE.
China’s elements of surprise
Stocks Drop as Recessionary Pressures Build
Wednesday (May 29)
- There are no British events
*All release times are DST
*Key events are in bold
FTSE, Wednesday, May 29 at 11:35 DST
Previous Close: 7,268 Open: 7,219 High: 7,149 Low: 7,226 Close: 7,185