Investor gloom

London shares opened down, taking their cue from the investor gloom affecting the US markets.

London shares opened down, taking their cue from the investor gloom affecting the US markets, with the Nasdaq falling back -1.00% and the S&P500 down -0.66%. Goldman Sachs lowered its fourth-quarter US growth forecast by 20 basis points to 1.8%. 

European trading was also down over concerns about a possible return to political instability affecting the economy, after Italy’s deputy prime minister Matteo Salvini called for a general election. The FTSE MIB, was particularly affected (-2.48%), with the FTSE relatively insulated (-0.44%), on poor trade data but helped by a weakened sterling.

Russian cheer

Top of the FTSE benchmark is Roman Abramovich’s steel company Evraz, with its shares up 2.06%, after announcing solid interim results to end-June supported by positive trends in their key product markets, including a recovery of construction activity in Russia. Antofagasta was up 1.71%, after a strong quarter featuring a jump in copper production and falling costs. Rolls Royce was down -2.51%, due to significantly high cash outflow, as it battles to fix its new Trent engine.

Asian shares opened the week on a positive note after a difficult week, led by the Shanghai Composite on 0.99%, the Sensex on 0.68% and the Nikkei 225 on 0.44%.

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