FTSE higher on Wall Street gains

London shares are living of the glory of Wall Street this morning after US indices closed at record levels and the S&P nudged the key 3,000 level.

London shares are living of the glory of Wall Street this morning after US indices closed at record levels and the S&P nudged the key 3,000 level. 

The DAX is also higher but less than the FTSE, weighed down by a profit warning by Daimler as the firm had to make further provisions to deal with a regulatory crackdown on its diesel emissions. DAX shares slipped 1.87% and also spilled into London trading hitting mainly the FTSE 100-listed Auto Trader Group. However, at the very bottom of the index was insurance firm Hiscox which lost nearly 5% in early trade having warned the market that last year’s disasters will affect profits. 

Chinese trade data a double-edge sword

Chinese trade data surprised investors with an 11% increase in the trade surplus with the US in June, unexpected at the time when the trade tensions between the two countries are still rising. The data will be a double-edge sword for the market. On the one hand it will work towards the economic growth in China on which many Western markets depend for their own expansion but at the same time will only intensify the friction with the US because the issue of the massive surplus is the original cause of their trade dispute.

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