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London stocks gained in early trade on Wednesday, recovering from heavy losses in the previous session, when markets were rattled by trade war concerns.
At 0840 GMT, the FTSE 100 was up 0.5% at 8,803.05, having closed down 1.3% on Tuesday.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “After a tortuous Tuesday for global markets, investors have clung onto sparks of positivity which have helped the FTSE 100 make some gains in early trade, although it’s tentative progress.
“Hopes are rising that a Ukraine peace deal could be back on, China’s latest services snapshot shows promise and there are even some glimmers of possibility that some reprieve from punishing tariffs could be in sight.
“Expectations have risen that US relations with Ukraine are warming up from the ice-cold intensity of Friday’s Oval Office meeting between Trump, Vance and Zelensky. Trump brandished a letter from the Ukrainian President, in his address to Congress, which he said indicated Kyiv was ready to come to the negotiating table. The renewed willingness from Zelensky to sign a minerals deal has led to hopes that a way can be found out of a diplomatic quagmire, which has eased some geopolitics fears.”
Streeter also said that although Trump ramped up the rhetoric when it comes to trade, promising reciprocal tariffs on more trade partners, “there are some shards of hope that high tariffs could be a negotiating tactic rather than set long-term trade policy”.
“It comes after the US Commerce Secretary Howard Lutnick has dangled the possibility that Trump could announce a deal to reduce the duties on Mexico and Canada as soon as today, citing pledges on reducing fentanyl drug flows as the reason.”
A survey released earlier showed that activity in China’s services sector continued to grow in February, signalling a sustained recovery.
The Caixin/S&P Global services purchasing managers’ index rose to 51.4 from 51.0 in January, coming in above the 50.0 mark that separates contraction from expansion for 26 months in a row. It was above analysts’ expectations for a reading of 50.8.
The survey found that February’s expansion was driven by a combination of higher sales, the start-up of new projects and promotional work.
In equity markets, Games Workshop surged to the top of the FTSE 100 as it lifted guidance for the full year, saying trading in January and February had been ahead of expectations, with strong trading across both the core business and licensing.
Barclays also rose sharply after an upgrade to ‘outperform’ by BNP Paribas Exane.
Breedon racked up strong gains after full-year results and as it announced the acquisition of US construction materials and surfacing solutions business Lionmark for $238m (£187m).
Wealth management outfit Quilter jumped as it lifted its full-year dividend by 13% after a strong end to 2024, as the company reported double-digit profit growth and a big increase in assets under management and administration.
Moonpig shot higher after an initiation at ‘outperform’ by RBC Capital Markets.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Fresnillo | +5.77% | +45.00 | 825.00 |
| 2 |  |
Barclays | +5.44% | +15.90 | 308.30 |
| 3 |  |
Crh Plc | +5.24% | +382.00 | 7,678.00 |
| 4 |  |
Banco Santander S.a. | +4.28% | +21.00 | 512.00 |
| 5 |  |
Melrose Industries Plc | +3.74% | +24.00 | 666.00 |
| 6 |  |
Glencore Plc | +3.48% | +10.90 | 323.75 |
| 7 |  |
Antofagasta Plc | +3.39% | +58.00 | 1,768.00 |
| 8 |  |
Rolls-royce | +3.36% | +26.40 | 812.80 |
| 9 |  |
Ashtead Group Plc | +3.29% | +145.00 | 4,549.00 |
| 10 |  |
Bae Systems Plc | +3.28% | +51.50 | 1,621.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
National Grid Plc | -3.13% | -30.40 | 941.60 |
| 2 |  |
Severn Trent Plc | -2.83% | -71.00 | 2,441.00 |
| 3 |  |
Coca-cola Europacific Partners Plc | -2.62% | -180.00 | 6,680.00 |
| 4 |  |
British American Tobacco Plc | -2.25% | -71.00 | 3,085.00 |
| 5 |  |
Haleon | -2.05% | -8.50 | 406.40 |
| 6 |  |
Sse Plc | -1.69% | -25.50 | 1,480.00 |
| 7 |  |
Unilever Plc | -1.67% | -77.00 | 4,540.00 |
| 8 |  |
United Utilities Group Plc | -1.52% | -14.80 | 961.40 |
| 9 |  |
Gsk Plc | -1.39% | -21.00 | 1,488.00 |
| 10 |  |
Imperial Brands Plc | -1.31% | -37.00 | 2,787.00 |
US close: Stocks sharply lower as Trump’s tariffs reignite trade war
Wall Street stocks closed sharply lower on Tuesday as Donald Trump’s tariffs on Canadian, Mexican and Chinese imports came into effect.
At the close, the Dow Jones Industrial Average was down 1.55% at 42,520.99, while the S&P 500 lost 1.22% to 5,778.15 and the Nasdaq Composite saw out the session 0.35% weaker at 18,285.16.
The Dow closed 670.25 points lower on Tuesday, below where it sat before Election Day in November, as Trump ignites a trade war between the US and a number of its main trading partners.
China retaliated with additional tariffs of up to 15% on US goods, while Canadian prime minister Justin Trudeau said he would place a 25% import levy on US goods, to which Trump responded by promising to hit America’s neighbour to the north with even higher tariffs. Mexican president Claudia Sheinbaum said his country would respond with tariffs and other measures this weekend.
In the corporate space, retailer Best Buy traded lower in pre-market after its warning that continued pressure on consumers was expected to hurt sales saw investors ignore Q4 revenues that came in ahead of expectations. Best Buy said Q4 revenues had fallen from $14.64bn to $13.94bn, ahead of expectations for a bigger drop to $13.68bn, while same-store sales rose 0.5% when analysts were expecting to see a 1.5% year-on-year decline.
Elsewhere, Target posted a stronger-than-expected end to 2024 but guided to soft sales in February.
No major data points were released on Tuesday.
Wednesday newspaper round-up: Trade unions, Apple, Smith & Nephew
Some companies are “stuck in neutral” in their approach to artificial intelligence, according to Microsoft’s UK boss, who said a significant number of private and public sector organisations lack any formal AI strategy. A Microsoft survey of nearly 1,500 UK senior leaders across public and private sectors, as well as 1,440 employees, found that more than half of executives feel their organisation has no official AI plan. Roughly the same proportion report a growing gap in productivity – a measure of economic efficiency – between employees who use AI and those who do not. – Guardian
Trade unions have declared victory as Labour bolstered a string of measures in its workers’ rights bill, amid criticism of the government from business groups saying there had been no “meaningful change” despite engagement. Union sources said they were delighted there had been no watering down of any key measures in the employment rights bill, which will face its final vote in the Commons next week, after wrangling between ministers, unions and businesses. – Guardian
Apple has launched a legal battle against Yvette Cooper’s secret order for the tech giant to install a backdoor in the iPhone. The company has lodged an appeal with the Investigatory Powers Tribunal, the court that oversees Britain’s surveillance laws, over the demand to provide access to encrypted iPhone messages and pictures. – Telegraph
The company that makes Tasers is poised to roll out a “covert” weapon to satisfy a surge in demand from nervous chief executives after the head of America’s biggest health insurer was shot dead in New York. Axon has told investors that fear among corporate bosses in the wake of the assassination presented a huge growth opportunity for the company. – Telegraph
The owner of Boots, the high street chemist, is nearing a $10 billion deal to be taken private by an American private equity firm. Walgreens Boots Alliance, the US-listed drugstore chain, is in negotiations with New-York based Sycamore Partners to agree a takeover. The parties are aiming to reach a deal as soon as Tuesday, The Wall Street Journal reported. – The Times
Smith & Nephew has opened the door to a possible break-up amid activist pressure to consider a separation of the FTSE 100 company’s largest division. The 169-year-old company, one of the world’s biggest and oldest medical equipment manufacturers, has outlined scenarios under which it could evaluate strategic options for its struggling orthopaedics division, in a shift in its public position. – The Times
