London Shares to Open Lower Despite Good Showing on Wall Street

LONDON, England – London shares are expected to open lower this week despite positive international trading news.

The Christmas week will be a slow one for London with the FTSE 100 index set to open at 15.78 points lower. The index was 0.1% or 8.66 points up at 7,582. 48 when the market closed last Friday. But now it’s at 7,566.70.

Equities are pulling back despite positive new from China. The country’s Ministry of Finance recently announced that it will be reducing tariffs for more than 850 products for one year. The surprising move from Beijing was said to be due to the country’s vow to open up their economy further. It is said to be unrelated to their trade deal with the US.

The Asian superpower will reportedly lower tariffs on fish, pork, nuts, cheese, pharmaceuticals, and an array of chemical products. Tariffs on technology products will also be lowered next year.

There’s no major economic events or announcements set in the United Kingdom this week, ut a Stateside report is scheduled to be released today. The data will give a preliminary reading on goods ordered the previous month. Data for new home sales for November will also be released today.

Several major companies are expected to make several changes today. NMC Health has announced that it will start an independent investigation into allegations made by Muddy Waters.

The short seller claimed of dubious dealings within the company. The healthcare company says the allegations have affected share prices. The company’s stocks were down by 50% in the previous week.

NMC Health says the are certain the review will be completed in their favor. They also claimed their stock’s present pricing doesn’t fairly reflect the company’s value which is always consistent in terms of “strong growth and cash generation.”

Pharmaceutical giant AstraZeneca has also confirmed today that China has approved its treatment for chronic obstructive pulmonary disease (COPD).

Meanwhile, Anglo American has received the next piece of its operating license for its Minas-Rio iron ore facility.

The pound sterling will also drop back to $1.30 now that the glow from the recent elections has completely faded and expectations are not matching reality. The EUR/USD exchange rate is also back to its usual trading range. The euro is quoted at $1.1083 at the start of the week. It was flat against the US dollar last week.

Trading this week is expected to be low-key, especially as it will be shortened due to the Christmas holiday.