* Rolls-Royce bottoms out FTSE 100 after S&P cuts to junk
* Investors await Trump news conference on China
* Discount retailer B&M rises on upbeat trading update
* FTSE 100, FTSE 250 gain for the month (Adds details, updates to close)
By Sagarika Jaisinghani and Ambar Warrick
May 29 (Reuters) - UK shares ended lower on Friday as fears of Washington's response to Beijing tightening its control over Hong Kong tempered optimism over an eventual economic recovery from the coronavirus crisis.
Still, the two indexes gained for the month as investors continued to bet on a bounceback in economic growth from the coronavirus.
Optimism over the reopening of a bulk of the British economy next month saw the domestically inclined FTSE 250 marking its best two-month rise since 2009.
For the day, bank stocks .FTNMX8350 tracked a decline in gilt yields as investors fled to perceived safe havens ahead of U.S. President Donald Trump's news conference on China's move to impose a national security law on Hong Kong that has raised concerns over its function as a global finance hub. equities had been willing to look past the risk of escalating U.S.-China tensions over recent weeks because the threats had largely been confined to mere sabre-rattling," wrote Han Tan, market analyst at FXTM.
"That Trump rhetoric is set to evolve into actual policies, potentially in the form of sanctions, which could shatter the stability that the world sorely needs in these early days of the post-pandemic era."
The threat of a renewed U.S.-China trade war has stymied a wider stock market rally, which had seen the FTSE climbing about 26% since mid-March, after crashing more than 36% from a January record high.
Rolls-Royce RR.L tumbled nearly 15% to the bottom of the FTSE 100 as Standard & Poor's cut its credit rating to junk on the disruption to global air travel from the COVID-19 pandemic. retailer B&M BMEB.L rose 5.5% after an upbeat trading update, while building materials supplier SIG Plc SHI.L gained 4.3% on plans to raise 150 million pounds ($185.12 million) in new equity.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.