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London stocks on the FTSE 100 ticked higher in early trade on Thursday but gains were muted, after a US court blocked Donald Trump from imposing sweeping global tariffs.
At 0830 BST, the FTSE 100 was up 0.1% at 8,735.23.
In a major blow to Trump’s core economic policy, the US Court of International Trade ruled late on Wednesday that Congress alone had exclusive authority to regulate commerce with other countries, and that presidential powers to safeguard the economy did not overrule that.
The ruling invalidates most of Trump’s tariffs with immediate effect. The administration has been given ten days to dismantle the regime.
The White House said it would appeal, however, and claimed it was “not for unelected judges to decide how to properly address a national emergency”.
Derren Nathan, head of equity research at Hargreaves Lansdown, said that confidence towards the FTSE 100, which is weighted towards large multinational corporations, mirrors that seen in Asian markets overnight.
“But in this rapidly evolving landscape the latest development is unlikely to be the last twist in the tale, and the administration has already lodged an appeal,” he said. “The world will be watching closely as the United States legal system seeks to hold its highest office to account.”
Investors were also reacting to the latest results from Nvidia, which were released after the close on Wednesday and sent the shares up nearly 5% in after-hours trading.
Kathleen Brooks, research director at XTB, said: “Nvidia’s done it again. They delivered another monster earnings report for the first quarter of this year. Revenues were an enormous $44.06bn of revenue for last quarter, beating estimates of $43.2bn, earnings per share also beat estimates at $0.96, versus $0.93.
“Net income was slightly below expectations at $19.89bn, however, Nvidia is the ultimate growth company, risk sentiment has jumped in post market trading, so this has been well tolerated by the market.”
In equity markets, equipment rental firm Ashtead – which has significant exposure to the US market – was the top performer on the FTSE 100.
On the downside, Auto Trader tumbled despite delivering a confident outlook alongside its full-year results.
It said group revenues rose 5% to £601.1m over the 12 months to 31 March, as 7% growth at the core Auto Trader platform to £564.8m outweighed a 12% decline in sales at the van-leasing division Autorama to £36.3m. Group operating profits rose 8% to £376.8m.
Richard Hunter, head of markets at Interactive Investor, said: “A strong recent run in the share price has led to some significant investor displeasure at the open, given that the results were no more than in line with estimates and with the outlook containing few positive surprises.”
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bp 9% 2nd Prf | +3.80% | +6.00 | 164.00 |
| 2 |  |
Standard Chartered Plc | +2.54% | +29.00 | 1,169.00 |
| 3 |  |
Flutter Entertainment Plc | +2.09% | +380.00 | 18,560.00 |
| 4 |  |
Pershing Square Holdings Ltd | +1.77% | +70.00 | 4,024.00 |
| 5 |  |
Prudential Plc | +1.73% | +14.40 | 847.60 |
| 6 |  |
Airtel Africa Plc | +1.53% | +2.70 | 179.30 |
| 7 |  |
Ferguson Enterprises Inc. | +1.48% | +200.00 | 13,690.00 |
| 8 |  |
Barclays | +1.48% | +4.80 | 328.75 |
| 9 |  |
Smurfit Westrock Plc | +1.48% | +48.00 | 3,302.00 |
| 10 |  |
Melrose Industries Plc | +1.46% | +6.80 | 473.30 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Auto Trader Group Plc | -13.73% | -123.60 | 776.40 |
| 2 |  |
National Grid Plc | -3.78% | -40.50 | 1,031.00 |
| 3 |  |
Severn Trent Plc | -3.23% | -88.00 | 2,634.00 |
| 4 |  |
Relx Plc | -3.02% | -123.00 | 3,945.00 |
| 5 |  |
Phoenix Group Holdings Plc | -2.57% | -16.50 | 626.00 |
| 6 |  |
Informa Plc | -1.99% | -15.80 | 777.80 |
| 7 |  |
Coca-cola Hbc Ag | -1.98% | -78.00 | 3,858.00 |
| 8 |  |
Marks And Spencer Group Plc | -1.92% | -7.30 | 373.80 |
| 9 |  |
Pearson Plc | -1.81% | -21.50 | 1,165.00 |
| 10 |  |
Intertek Group Plc | -1.46% | -70.00 | 4,738.00 |
US close: Stocks lower as traders digest FOMC minutes
Major indices closed lower on Wednesday as market participants digested minutes from the Federal Open Market Committee‘s latest policy meeting and awaited earnings from AI darling Nvidia.
At the close, the Dow Jones Industrial Average was down 0.58% at 42,098.70, while the S&P 500 lost 0.56% to 5,888.55 and the Nasdaq Composite saw out the session 0.51% weaker at 19,100.94.
The Dow closed 244.95 points lower on Wednesday, taking a bite out of gains recorded in the previous session after Donald Trump delayed tariffs on the European Union.
Investors thumbed over minutes from the Federal Reserve’s May meeting, growing cautious after central bankers expressed concerns that Trump’s “Liberation Day” tariffs could aggravate inflation and create a difficult quandary with interest rate policy. “Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer,” read the minutes. “Participants noted that the Committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken.”
On the macro front, mortgage applications fell by 1.2% in the week ended 23 May, according to the Mortgage Bankers Association of America, extending the 5.1% decline in the previous week to the lowest level in three months. Applications to refinance a mortgage fell by 7.1%, while applications to purchase a home rose by 2.7%.
Elsewhere, the Richmond Federal Reserve‘s manufacturing index increased to -9 points in May, up from -13 in April and in line with market expectations.
In the corporate space, all focus will be on Q1 earnings from chipmaker Nvidia after the close.
Thursday newspaper round-up: Baby formula, electric vehicles, Fresnillo
Baby formula prices remain close to historic highs more than 18 months after the UK competition watchdog began an investigation into the market, with the government a week late in responding to its proposed remedies. The cost of infant formula fell only 50p on average last year, to £11.99 a tin, compared with £11.10 in 2021, with the most expensive priced at £18. – Guardian
Jobcentres will no longer force people into “any job” available, the employment minister has said, promising there will be long-term, personalised career support for those losing out due to welfare cuts. Alison McGovern said she was ending the Conservative policy under which jobseekers were obliged to take any low-paid, insecure work and that the service would now be focused on helping people to build rewarding careers. – Guardian
Electric vehicles (EVs) are losing more than half their value in the first two years of ownership amid a wave of heavy discounting by carmakers. A typical EV now retains only 49pc of its value after 24 months, a sharp decline from 83pc as recently as 2022, according to Cox Automotive. For a new car bought for £40,000, this would translate to a value of just £19,600 after two years. – Telegraph
One of the UK’s largest mining groups has been told it should pay as much as $630 million to a Mexican community whose land it illegally mined for gold, according to documents seen by The Times. Fresnillo learned of the sum in January from a court-appointed independent review, which followed a court ruling that it should return gold it mined or pay people in the area the equivalent value. – The Times
Ministers will be handed a “reserve power” that will allow them to force pension funds to invest in British assets in a move that is likely to cause alarm in the retirement industry. The government will on Thursday give details of a series of reforms that will be implemented through the Pension Schemes Bill, as it steps up its efforts to harness the firepower of Britons’ retirement pots to bolster the UK economy. – The Times
