Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
London open: Stocks flat as investors continue to mull Trump tariffs
London stocks were steady in early trade on Wednesday as investors continued to mull the implications of Trump’s news tariffs and ahead of a key US inflation reading.
At 0850 GMT, the FTSE 100 was flat at 8,256.49.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said market participants were still piecing through the potential ramifications of Trump’s “punishing” tariff plans for the global economy.
She said investors were showing “wariness about the implications for worldwide trade but remain hopeful that the worst scenarios may not materialise”.
“There is speculation that the bruising duties Donald Trump has outlined are his gauntlet thrown down to spark the start of negotiations rather than a considered policy map,” she said.
“Stocks on Wall Street reached fresh ground, as investors shrugged off concerns that his plans will spark new trade wars around the world, expecting in reality the measures will be toned down significantly.”
Streeter also pointed to an easing of geopolitical tensions in the Middle East after a ceasefire was agreed between Israel and Hezbollah, which she said “appears to have helped risk appetite”.
Looking ahead to the rest of the day, the US PCE is due at 1330 GMT.
Patrick Munnelly at Tickmill Group said: “The October PCE report will be released later today. Expect headline PCE to climb 0.2% m/m, or 2.3% y/y vs. 2.1% in September. Core prices to climb 0.3% m/m and 2.8% y/y from 2.7%. Both metrics are above the inflation objective, and core PCE would exceed the 2.6% Fed forecast in the latest Summary of Economic Projections for this year. That may be the Q4/Q4 change, so there is more wood to chop, but base effects suggest that core PCE will overshoot that forecast.
“Disinflation appears to have stopped according to recent forecasts. That would match market estimates that the Fed will suspend its easing cycle in December (only 40% probability of another 25bps drop).
“However, markets believe the Fed still views policy settings as too restrictive, and next year would be a better time to assess the outlook, supported by the FOMC’s assumptions revisions at the December meeting and before Trump’s inauguration. Trading activity is expected to decrease further as Thursday marks the beginning of a four-day Thanksgiving weekend for many in the United States.”
In equity markets, low-cost airline easyJet flew higher as it reported a surge in full-year profit and boosted its dividend on strong summer demand and a narrowing of winter losses. The company posted a 34% rise in pre-tax profit to £610m. The dividend was lifted to 12.1p a share from 4.5p.
BA and Iberia owner IAG also rose.
Auction Technology surged on the back of well-received full-year results and an upbeat outlook.
On the downside, Pets at Home tumbled as it cut its full-year outlook, highlighting a “subdued” market.
Johnson Matthey slumped as it reported a drop in sales and profits for the six months to September end, weighed down by the “challenging” macroeconomic backdrop.
Aston Martin slid after the car maker raised £210m through share and private debt placings to support its growth and investment strategy and shore up its balance sheet, one day after announcing its second profit warning within two months.
Pennon was a little weaker as it said it swung to a loss in the first half as restructuring costs and investments weighed on the bottom line.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Anglo American Plc | +2.53% | +60.00 | 2,432.50 |
| 2 |  |
Marks And Spencer Group Plc | +2.02% | +7.60 | 383.50 |
| 3 |  |
Bt Group Plc | +1.83% | +2.85 | 159.00 |
| 4 |  |
Wheaton Precious Metals Corp. | +1.54% | +75.00 | 4,950.00 |
| 5 |  |
International Consolidated Airlines Group S.a. | +1.46% | +3.70 | 256.60 |
| 6 |  |
Aviva Plc | +1.12% | +5.40 | 487.20 |
| 7 |  |
Rentokil Initial Plc | +1.07% | +4.30 | 407.00 |
| 8 |  |
Tesco Plc | +1.00% | +3.50 | 353.90 |
| 9 |  |
Coca-cola Hbc Ag | +0.99% | +28.00 | 2,844.00 |
| 10 |  |
Glencore Plc | +0.95% | +3.60 | 382.35 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Aib Group Plc | -3.08% | -13.50 | 424.50 |
| 2 |  |
Flutter Entertainment Plc | -0.91% | -200.00 | 21,770.00 |
| 3 |  |
Natwest | -0.79% | -3.10 | 388.40 |
| 4 |  |
Barclays | -0.69% | -1.80 | 259.15 |
| 5 |  |
Carnival Plc | -0.69% | -12.50 | 1,803.00 |
| 6 |  |
Banco Santander S.a. | -0.68% | -2.50 | 363.50 |
| 7 |  |
Diageo Plc | -0.68% | -16.00 | 2,348.50 |
| 8 |  |
Ferguson Enterprises Inc. | -0.59% | -100.00 | 16,810.00 |
| 9 |  |
Scottish Mortgage Investment Trust Plc | -0.59% | -5.60 | 942.40 |
| 10 |  |
Sage Group Plc | -0.50% | -6.50 | 1,304.00 |
US close: Stocks higher following Trump’s tariff announcement
Wall Street stocks closed higher on Tuesday after president-elect Donald Trump vowed to slap fresh tariffs on America’s biggest trading partners.
At the close, the Dow Jones Industrial Average was up 0.28% at 44,860.31, while the S&P 500 advanced 0.57% to 6,021.63 and the Nasdaq Composite saw out the session 0.63% firmer at 19,174.30.
The Dow closed 123.74 points higher on Tuesday, extending gains recorded in the previous session.
US president-elect Donald Trump has promised to institute new tariffs on China, Mexico and Canada from the first day of his presidency as part of an effort to stop illegal immigration and drug smuggling. Trump said he would sign an executive order that would slap all goods coming from Canada and Mexico with a 25% tariff, while China will be levied with an additional 10% tariff until Beijing cracks down on the illegal export of fentanyl to the US. Mexican President Claudia Sheinbaum Pardo indicated that any new tariffs on Mexico would be met with retaliatory tariffs on exports from the US
On the macro front, S&P Case-Shiller‘s 20-city housing price index increased 4.6% year-on-year in September, the smallest increase in the last twelve months, down from 5.2% in August and short of expectations for a reading of 4.8%.
Elsewhere, new home sales decreased to 610,000 units in the US during October, down from 738,000 in September, according to the Census Bureau.
Still on data, consumer confidence increased by 2.1 points in November to 111.7, according to the Conference Board, mainly driven by more positive consumer assessments of the present situation, particularly regarding the labour market.
On another note, the Richmond Federal Reserve‘s November manufacturing index remained unchanged at -14 in November.
Finally, minutes from the Federal Reserve‘s latest two-day policy meeting indicated that central bankers were confident that inflation was easing and the labour market remained strong, allowing it space to make further rate cuts.
In the corporate space, retailer Kohl’s traded lower after cutting its sales guidance on the back of an uncertain holiday backdrop, while shares in biotech firm Amgen also headed south after it revealed an experimental weight loss drug had helped patients lose up to 20% of their weight after twelve months, which was at the low end of investor expectations.
Wednesday newspaper round-up: Bookies, water companies, John Lewis
Bookmakers and casinos will be forced to fund NHS services that tackle problem gambling, after Labour rubber-stamped the previous government’s plans, which also include a cap of as little as £2 on the sums that can be staked on online slot machines. The Guardian revealed on Monday that the government was poised to approve the new “statutory levy”, using proceeds of around £100m a year to fund research, prevention and treatment of gambling harms. – Guardian
Water companies in England are using loopholes in order to not pay people who are left for days without running water, the CEO of the regulator has said. Tens of thousands of homes across the country have been left without water for days this year as ageing pipes burst. In May, 32,500 properties in Hastings and St Leonards-on-Sea had no service after a mains pipe burst, with some homes left without running water for five days. In January, households across Reading also faced an interruption to their water supply. – Guardian
Labour is poised to water down electric vehicle (EV) rules amid a mounting crisis in the industry over the pace of the transition away from petrol and diesel cars. Jonathan Reynolds, the Business Secretary, on Tuesday night confirmed a review of the Government’s zero emission vehicle (ZEV) mandate after warnings from carmakers that the rules were putting the industry’s future at risk. – Telegraph
John Lewis has said it is “worried” about the impact of higher employment costs after Rachel Reeves’s decision to increase the National Minimum Wage. In a fresh warning to the Chancellor over measures announced in the Budget, a senior John Lewis director said inflated labour costs were weighing on the department store as it attempts to turn around its fortunes. – Telegraph
More than 1,100 jobs at the historic van-making factory of Vauxhall in Luton are at risk after parent company Stellantis announced it planned to shut the site next April. In a blow to the UK automotive industry, Stellantis said it was in consultation with unions and employees over the proposals. – The Times
