UK stock market index, FTSE 100, opened 1.6% or 96.23 points down at 6115 on Friday early morning despite the optimistic news about the positive retail sales. Geopolitical tension between the two biggest economies of the world, US and China, is reported to be the major reason behind the fall.
The trade war between the top two GDP countries is getting worse, and China has ordered the United States of America to close a consulate in the southwestern city of Chengdu. The response came as a tit for tat static after the US asked China to shut its consulate in Houston.
Mike Pompeo, US Secretary of State, said that the move against China was taken because they were “looting” intellectual property. Earlier, the federal administration, led by Trump, had attacked China over the COVID pandemic, trade, and China’s execution of new law in Hong Kong.
The UK fall despite the administration reported that the retail sales had leapt 13.9% in June as the lockdown restrictions are eased.
In the meantime, many other big organizations have posted their quarterly results and reported losses or fall in revenues. The companies include Centrica with a 7.5% drop in revenue, Telecom giant Vodafone, whose revenues fell 1.4% globally, Education publisher Pearson, and pharmaceutical company AstraZeneca.