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London stocks nudged lower in early trade on Monday as worries about Trump’s trade war continued to dent sentiment.
At 0845 GMT, the FTSE 100 was down 0.1% at 8,669.60.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week. The prospect of a recession in the US is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous. China’s deflation problem is also weighing on sentiment, and geopolitical concerns are staying in focus, with attacks on Ukraine intensifying.
“The FTSE 100 is on the back foot in early trade, unable to shake off the nervousness surrounding the concerns about slowing global growth. Brent Crude, a gauge of expectation about the health of the global economy, has dipped back again, trading around $70 a barrel, as energy demand is expected to be weaker as economies slow.
“A disappointing snapshot from China, showing consumer price fell at the fastest rate in 13 months, is adding to concerns about weakness in the global economy. Deflation continues to stalk the Chinese economy, with consumers super-cautious about spending. The property crisis has battered wealth perceptions and led to risk averse behaviour, with wariness rising amid the ratcheting up trade tensions and fresh tariffs being imposed by the US.
“Efforts by authorities so far to reduce the cost of borrowing to stimulate growth have not had the desired effect. The expansion of a subsidy programme for a range of domestic goods underwhelmed, given the lack of more targeted support for households.”
In equity markets, Assura surged after saying it was minded to recommend an improved, £1.61bn cash takeover proposal from investment firms KKR and Stonepeak.
The consortium has offered 49.4p per share, which is 2.9% increase on the previous proposal of 48p per share.
The company also said it had received and rejected an indicative, non-binding proposal from Primary Health Properties about a possible all-share combination with an implied value of 43p per share.
Watches of Switzerland rallied as it launched a £25m share buyback.
Deliveroo gained as it said it had decided to exit its Hong Kong operations through a sale of certain assets to Foodpanda and the closure of other assets.
Great Portland Estates rose after saying it had secured its largest fully managed deal to date, letting more than 11,500 sq ft of office space to FTSE 100 retailer Next in central London on a five-year term.
Pennon was also higher after an upgrade to ‘buy’ at Citi.
“Whilst the backdrop for the UK water sector remains uncertain, at the current share price, we believe the market is excessively discounting operational underperformance of over £500m in PNN shares, a quarter of its market cap,” the bank said. “We see a valuation gap under our framework with the risk/reward balance skewed to the upside, providing an opportunity for a mean reversion trade.”
On the downside, shipping services firm Clarkson tumbled as it said annual profits were in line with revised expectations, but also that the geopolitical outlook remains uncertain, with ongoing regional conflicts and trade tensions creating uncertainty for markets.
Underlying pre-tax earnings came in at £115.3m in line with upgraded guidance published in January. Revenue was up to £661m from £639m.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Coca-cola Europacific Partners Plc | +2.60% | +160.00 | 6,320.00 |
| 2 |  |
Sainsbury (j) Plc | +1.41% | +3.60 | 258.20 |
| 3 |  |
Smurfit Westrock Plc | +1.25% | +44.00 | 3,575.00 |
| 4 |  |
Ferguson Enterprises Inc. | +1.18% | +150.00 | 12,880.00 |
| 5 |  |
Severn Trent Plc | +1.17% | +28.00 | 2,421.00 |
| 6 |  |
United Utilities Group Plc | +1.06% | +10.20 | 968.40 |
| 7 |  |
Flutter Entertainment Plc | +0.98% | +185.00 | 19,040.00 |
| 8 |  |
National Grid Plc | +0.92% | +8.60 | 938.40 |
| 9 |  |
Compass Group Plc | +0.92% | +24.00 | 2,627.00 |
| 10 |  |
Segro Plc | +0.89% | +6.20 | 699.60 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Crh Plc | -3.10% | -230.00 | 7,184.00 |
| 2 |  |
Antofagasta Plc | -2.95% | -54.50 | 1,790.00 |
| 3 |  |
Banco Santander S.a. | -2.69% | -14.00 | 506.00 |
| 4 |  |
Intermediate Capital Group Plc | -2.54% | -54.00 | 2,074.00 |
| 5 |  |
Melrose Industries Plc | -2.50% | -12.20 | 476.60 |
| 6 |  |
Aib Group Plc | -2.46% | -14.50 | 575.00 |
| 7 |  |
Astrazeneca Plc | -2.22% | -268.00 | 11,804.00 |
| 8 |  |
Anglo American Plc | -2.18% | -52.00 | 2,329.50 |
| 9 |  |
Natwest | -2.18% | -9.90 | 445.20 |
| 10 |  |
Fresnillo | -2.06% | -17.50 | 831.00 |
US close: Stocks rise after tumultuous week for markets
US stocks managed to finish the week on a positive note after a volatile session following a weaker-than-expected jobs report and comments from the head of the Federal Reserve, who said policymakers were in a holding pattern on interest rates.
After swinging between gains and losses for most of the day, the Dow closed 0.5% higher, the S&P 500 gained 0.6% and the Nasdaq climbed 0.7% – though the three indices finished the week down nearly 3% each.
The S&P 500 and Nasdaq hit four- and five-month lows the previous session, respectively, after a tumultuous few days for investors on the back yet more unpredictable moves by Donald Trump regarding tariffs.
On Thursday, the president delayed his proposed 25% tariffs on goods imported from Mexico and Canada that comply with the USMCA trade agreement, a day after he granted a one-month tariff reprieve for automakers. The suspension, which was announced a mere two days after the levies first came into force, will run until 2 April.
“US President Trump’s bewildering tariff policy is creating heightened uncertainty and investor concern with hedge funds having liquidated global equity positions at the fastest rate on record,” said Axel Rudolph, senior technical analyst at IG.
Jobs report, Powell comments
Friday’s primary focus was February’s non-farm payrolls report, which revealed hiring in the US rose roughly as expected last month. According to the Department of Labor, in seasonally adjusted terms non-farm payrolls increased by 151,000 in February. Economists had anticipated a gain of 158,000.
The rate of unemployment ticked higher by one-tenth of a percentage point from the month before to reach 4.1%, while labour force participation slipped by two-tenths of a percentage point to 62.4%. Private sector payrolls rose by 140,000, while government payrolls where up by just 11,000. Payroll figures for the prior two months were revised down by a combined 2,000.
At a conference on Friday, Fed chair Jerome Powell said the central bank was happy to “wait for greater clarity” on the economic outlook before it moves again on interest rates.
“The economy is fine. It doesn’t need us to do anything, really. And so we can wait,” he said.
Market movers
Chipmaker Broadcom was a high riser after posting first-quarter earnings and revenues ahead of consensus forecasts, driven by a 77% year-on-year surge in AI revenue. The company also provided stronger-than-expected guidance for the second quarter.
Walgreens Boots Alliance jumped after agreeing to be bought by private equity firm Sycamore Partners in a $10bn deal. Sycamore will pay $11.45 per share in cash, compared with Thursday’s closing price of $10.60.
Fast food outfit Jack in the Box traded higher on the back of first-quarter earnings that came in ahead of analyst expectations.
Shares in embattled server maker Super Micro Computer surged after it finally submitted its long-awaited financials.
Monday newspaper round-up: Hiring, Starlink, Thames Water
Companies are putting the brakes on hiring new staff amid a “subdued” economic outlook and rising wage bills, according to the latest business surveys. In signs of a weakening UK labour market, the consultancy KPMG and the trade body the Recruitment and Employment Confederation (REC) said a marked decline in the number of people being placed in permanent and temporary roles continued in February, although hiring declined at a slower pace than in January. – Guardian
Councils and mayors will be granted greater powers to seize land to build affordable housing under the Labour government’s shake-up of planning rules this week. Local authorities in England and Wales will no longer need permission from central government to make compulsory purchase orders (CPOs), in a change that ministers hope will unlock vacant and derelict land. – Guardian
Elon Musk’s satellite technology is set to be deployed to help keep GPs in rural parts of England connected to the internet. The NHS has awarded a contract worth £85,000 to Starlink, which is part of Mr Musk’s SpaceX, to help provide internet services to GP practices and administrative offices in the North East and North Cumbria. – Telegraph
London is at risk of being swamped by burst pipes and sewage leaks if Thames Water is forced into an emergency nationalisation later this month, insiders fear. There are growing concerns that maintenance and repair works could grind to a halt if a multibillion-pound private sector-led bailout is rejected by the Court of Appeal in the coming days. – Telegraph
The beleaguered boss of BP has insisted that a move to increase fossil fuel production and abandon green energy targets is “resonating” with investors, as he races to convince shareholders that he can turn around the fortunes of the oil major. In his first public comments since promising a “fundamentally reset” strategy two weeks ago, Murray Auchincloss writes in The Times that unwinding a series of “misplaced” targets set out five years ago had been well received as he steps up efforts to woo investors. – The Times
