With the Tory party in turmoil, and Huawei waving goodbye to another supplier, the markets were in a bad way after the bell.
Panasonic (LON:0QYR) become the latest company to deal a blow to the Chinese tech giant, joining EE, Vodafone (LON:VOD), Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and, most importantly, ARM on the list of firms scaling back or outright severing their relationship with Huawei following the US blacklisting.
Whatever relief was generated by the announcement a 90-day grace period earlier in the week has completely dissipated, as investors fret over the damage this nascent tech Cold War is doing to the chance of a positive outcome to the US-China trade battle.
Following on for a 4-month low-hitting overnight session in Asia, the DAX and CAC both plunged 1.1% apiece, falling under 12050 and 5300 respectively. The FTSE, meanwhile, tumbled below 7300 as it slid a 0.8%. That the UK index’s losses were so large despite the cushioning factor of the pound’s own decline shows the extent to which the markets are worried.
With Britons heading to the polls for a European Election vote that is expected to see the Brexit Party sweep to victory, and Theresa May barely clinging on to her job following Cabinet uproar over the contents of the Withdrawal Agreement Bill, the pound’s depression only worsened on Thursday. Sinking half a percent against the dollar, cable is now the wrong side of $1.261 for the first time since January 3rd. Against the euro, meanwhile, the pound shed another 0.3%, forcing it to a fresh 4-month low.
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