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London stocks on the FTSE 100 rose in early trade on Friday as investors mulled the latest twists and turns in the Trump tariff saga.
At 0830 BST, the FTSE 100 was 0.4% higher at 8,753.56.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “When it comes to global trade right now the only certainty is uncertainty. Just a day after US courts halted the lion’s share of Trump’s recent tariff increases, judges have temporarily reinstated the new border taxes. Little wonder markets are struggling for direction.
“The Footsie is trying to lift its head above water this morning. But Asian stocks were generally down over night and US futures are pointing to a weak open later today. Investors on Wall Street are also weighing up slightly weaker than expected employment data.
“Markets will be hoping May’s core PCE inflation number out later today won’t stray much above annualised forecasts of 2.5%. However, the numbers need to be taken with a large pinch of salt given that they’re yet to feel the full impact of tariffs. Any sign of worsening inflationary pressure is likely to weigh on expectations for further interest cuts by the Fed this year which would be a worry given the inertia building in the economy.”
Corporate news was thin on the ground, but M&G surged to the top of the FTSE 100 after it was announced that Japan’s Dai-ichi Life will take a stake in the investment manager after the two firms agreed a long-term strategic partnership.
Under the terms of the deal, the blue chip will become Dai-chi’s preferred asset management partner in Europe, while the mutual insurer will acquire a shareholding of around 15% in M&G.
The partnership is expected to generate at least $6bn in new business flows into funds managed by M&G over the next five years, the British firm said.
Elsewhere, Hiscox rallied after an upgrade to ‘outperform’ by BNP Paribas Exane. It and Beazley were also boosted by reinstatements of coverage at ‘buy’ by Berenberg.
Alpha Group gained after it said that the deadline by which Corpay must either announce a firm intention to make an offer for the group or walk away has been extended. The company said it held recent discussions with Corpay “and believes that it is in the best interests of shareholders to continue engagement”.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bt Group Plc | +2.27% | +3.95 | 177.90 |
| 2 |  |
Weir Group Plc | +1.91% | +46.00 | 2,454.00 |
| 3 |  |
Reckitt Benckiser Group Plc | +1.90% | +94.00 | 5,040.00 |
| 4 |  |
Sse Plc | +1.75% | +30.50 | 1,773.50 |
| 5 |  |
Severn Trent Plc | +1.65% | +44.00 | 2,704.00 |
| 6 |  |
Gsk Plc | +1.41% | +20.50 | 1,476.50 |
| 7 |  |
St. James’s Place Plc | +1.40% | +15.50 | 1,125.50 |
| 8 |  |
Tesco Plc | +1.36% | +5.20 | 387.70 |
| 9 |  |
Airtel Africa Plc | +1.35% | +2.40 | 180.20 |
| 10 |  |
Associated British Foods Plc | +1.26% | +26.00 | 2,088.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
International Consolidated Airlines Group S.a. | -1.14% | -3.80 | 329.00 |
| 2 |  |
Crh Plc | -0.82% | -56.00 | 6,760.00 |
| 3 |  |
Auto Trader Group Plc | -0.75% | -6.00 | 792.60 |
| 4 |  |
Wheaton Precious Metals Corp. | -0.63% | -40.00 | 6,320.00 |
| 5 |  |
Compass Group Plc | -0.60% | -16.00 | 2,634.00 |
| 6 |  |
Scottish Mortgage Investment Trust Plc | -0.60% | -6.00 | 988.40 |
| 7 |  |
Rio Tinto Plc | -0.58% | -26.00 | 4,435.00 |
| 8 |  |
Carnival Plc | -0.55% | -8.50 | 1,535.00 |
| 9 |  |
Bunzl Plc | -0.42% | -10.00 | 2,372.00 |
| 10 |  |
Intercontinental Hotels Group Plc | -0.40% | -34.00 | 8,560.00 |
US close: Stocks higher despite appeals court temporarily reinstating Trump’s tariffs
Major indices traded higher on Thursday as market participants digested news that while a federal court struck down Donald Trump’s so-called “reciprocal” tariffs, an appeals court later allowed them to be temporarily reinstated as it heard the White House’s argument.
At the close, the Dow Jones Industrial Average was up 0.28% at 42,215.73, while the S&P 500 advanced 0.40% to 5,912.17 and the Nasdaq Composite saw out the session 0.39% firmer at 19,175.87.
The Dow closed 117.03 points higher on Thursday, taking a bite out of losses recorded in the previous session as minutes from the Federal Reserve’s latest two-day policy meeting revealed that policymakers were growing more concerned about the potentially inflationary impact of Trump’s “Liberation Day” tariffs.
On Wednesday night, the US Court of International Trade ruled that Trump had overstepped his authority when imposing his “reciprocal” tariffs and ordered that the challenged tariff orders be vacated. In a major blow to the president’s core economic policy, the court ruled 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, with the administration being given ten days to dismantle the regime.
However, the White House’s global tariffs were later temporarily reinstated, after an appeals court agreed to pause a ruling blocking Trump’s sweeping trade levies as it considers the administration’s appeal. White House Press Secretary Karoline Leavitt claimed “we will win this battle in court” and said the administration was working to “tackle rogue judges”.
In terms of Thursday’s macro headlines, Americans lined up for unemployment benefits at an accelerated pace in the week ended 10 May, according to the Department of Labor. Initial jobless claims rose by 14,000 week-on-week to 240,000, the highest reading in a month, and above expectations of 230,000. Outstanding claims rose by 26,000 to 1.91m, also above market expectations of a drop to 1.89m, and the highest level since November 2021.
Elsewhere, the US economy shrank by 0.2% year-on-year during Q125, according to revised official statistics from the Bureau of Economic Analysis, confirming preliminary reports that the US economy had seen its first contraction since 2022. Q1’s GDP contraction comes after a 2.4% expansion in Q424 and was principally a result of a surge in activity as US firms hurried to import goods before Donald Trump’s sweeping tariffs.
Finally, pending home sales fell by 6.30% month-on-month in April, according to the National Association of Realtors, down from a 5.5% increase in March.
In the corporate space, shares in chipmaker Nvidia headed higher after the tech giant’s Q1 figures exceeded expectations on both the top and bottom lines, driven by a 73% year-on-year improvement in its data centre business, while Best Buy was under pressure after Trump’s tariff regime caused the US electronics retailer to slash its full-year revenue guidance to $41.1bn-41.9bn this year, down from its previous forecast og between $41.4bn-42.2bn.
After the close, Dell Technologies said Q1 revenues had grown 5% year-on-year, while retailer Gap posted another strong earnings beat but warned that Trump’s tariffs were expected to cost it $250.0m-300.0m, without mitigation efforts.
Friday newspaper round-up: Andrew Bailey, The Telegraph, pensions, Michael O’Leary
The UK is on the brink of signing a £1.6bn trade agreement with Gulf states, amid warnings from rights groups that the deal makes no concrete provisions on human rights, modern slavery or the environment. The deal with the Gulf Cooperation Council – which includes the countries Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – is within touching distance, making it a fourth trading agreement by Keir Starmer after pacts were struck with the US, India and the EU. – Guardian
Andrew Bailey has urged the UK government to deepen ties with the EU, as he warned a breakdown in global trade would make it harder for the Bank of England to control inflation. In a speech in Dublin on Thursday, the Bank’s governor said a stronger relationship between London and Brussels could “minimise negative effects” of Brexit on trade. – Guardian
An 11th-hour attempt to gatecrash the sale of The Telegraph with a “British bid” has been rejected. The latest approach from Dovid Efune, which includes funding from the hedge fund manager Jeremy Hosking, has been ruled out, according to multiple sources. – Telegraph
Government pension reforms could put “millions of people’s pensions at risk”, increase the prospect of scheme “collapses” and lower returns, experts have warned. Pensions specialists, campaigners and businesses issued the warning after the government said it would push ahead with plans to change the law to make it easier for employers to dip into pension schemes. – The Times
Michael O’Leary, the longstanding boss of Ryanair, has qualified for share options worth more than €100 million after stock in the Dublin-based airline hit a six-year-old price target. Shares in Europe’s largest low-cost carrier closed above €21 for a 28th consecutive day, meeting a condition of a share-option scheme originally set in 2019 on the eve of the pandemic. – The Times
