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London stocks on the FTSE 100 were little changed in early trade on Friday as investors mulled the latest UK GDP and retail sales figures, and continued to assess the impact of Trump’s auto tariffs.
At 0830 GMT, the FTSE 100 was steady at 8,664.48.
Kathleen Brooks, research director at XTB, said: “It will be an interesting session for financial markets today. Donald Trump’s reciprocal tariffs are once again dominating markets. Canada and the EU are preparing a raft of retaliatory measures, while the UK hopes not to be the tall poppy and aims to use diplomatic measures to deflect tariff threats.
“Investors are seeking solace in the gold price, which is above $3,080 at the time of writing, and is higher by another $27 per ounce on Friday. Gold and silver are outperforming stocks this week and the precious metals are higher by 2% and 4% so far this week.”
On home shores, data from the Office for National Statistics showed the economy grew more strongly than initially thought last year,
The ONS revised its estimate for real annual GDP in 2024 to 1.1% from 0.9%.
Leading the annual improvement were upward revisions of 0.1 percentage points in the first and second quarters of 2024.
Growth in the second half was largely left unchanged, however.
In the third quarter there was none, and the ONS confirmed an 0.1% uptick in the final three months, although year-on-year, fourth quarter real GDP was revised up to 1.5% from 1.4%
The ONS said that of the periods open to review, growth was unrevised in five of the eight quarters compared with the first estimate.
The ONS’s early estimates are regularly reviewed, as it receives updated or revised source data.
Separate figures from the ONS revealed that retail sales volumes rose by 1% in February.
That was down on January’s revised 1.4% increase, but well ahead of consensus expectations of a 0.3% fall. Sales volumes were also at their highest since July 2022.
Driving the growth were non-food sales, which grew “strongly”, the ONS said, and helped offset softer supermarket volumes.
Non-food stores, which include department, clothing and household retailers, rose by 3.1%. Jewellers reported strong demand for gold, in light of mounting geopolitical uncertainty, while household stores saw a 6.8% spike, the largest monthly rise since April 2021.
In contrast, food stores sales volumes fell 2% on the month, following a bumper 4.8% rise in January.
Year-on-year, overall retail sales volumes were 2.2% stronger.
In the three months to February, sales volumes rose 0.3% or by 2% year-on-year.
The ONS revised January’s figure down to 1.4% from its initial estimate of 1.7% growth.
In equity markets, utilities, which are defensive stocks, were the standout gainers on the FTSE 100, with SSE, National Grid, United Utilities and Severn Trent all up.
SSE was also in focus after saying it has promoted its chief commercial officer Martin Pibworth to the CEO position, replacing current boss Alistair Phillips-Davies who will formally leave the company this summer.
WH Smith edged lower after selling its UK High Street business to Modella Capital for an enterprise value of £76m on a cash and debt-free basis.
The retailer, which will now focus on its travel outlets, said it expected net cash proceeds of around £25m when adjusted for transaction and separation costs, which would be spent in line with its capital allocation policy.
It added that the deal did not include the funkypigeon.com personalised online greeting card business where strategic options were now being considered, including a possible sale.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bt Group Plc | +2.15% | +3.50 | 166.30 |
| 2 |  |
Severn Trent Plc | +1.97% | +48.00 | 2,486.00 |
| 3 |  |
Sainsbury (j) Plc | +1.94% | +4.60 | 241.60 |
| 4 |  |
United Utilities Group Plc | +1.88% | +18.40 | 995.40 |
| 5 |  |
Sse Plc | +1.88% | +29.00 | 1,575.50 |
| 6 |  |
Smurfit Westrock Plc | +1.82% | +63.00 | 3,532.00 |
| 7 |  |
National Grid Plc | +1.61% | +15.80 | 997.20 |
| 8 |  |
Astrazeneca Plc | +1.48% | +166.00 | 11,362.00 |
| 9 |  |
Haleon | +1.39% | +5.30 | 387.20 |
| 10 |  |
Vodafone Group Plc | +1.38% | +1.00 | 73.24 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Aib Group Plc | -1.98% | -10.00 | 494.50 |
| 2 |  |
Banco Santander S.a. | -1.48% | -8.00 | 531.00 |
| 3 |  |
International Consolidated Airlines Group S.a. | -1.41% | -4.10 | 286.70 |
| 4 |  |
Rolls-royce | -1.28% | -10.20 | 786.80 |
| 5 |  |
Bae Systems Plc | -1.20% | -19.00 | 1,565.50 |
| 6 |  |
South32 Limited | -1.08% | -1.80 | 165.40 |
| 7 |  |
Barclays | -1.00% | -3.05 | 300.45 |
| 8 |  |
Anglo American Plc | -0.97% | -22.50 | 2,299.50 |
| 9 |  |
Bp Plc | -0.93% | -4.15 | 441.85 |
| 10 |  |
Melrose Industries Plc | -0.93% | -4.80 | 511.80 |
US close: Stocks slip as investors weigh Trump’s auto tariffs
Wall Street stocks ended lower on Thursday as investor sentiment was weighed down by persistent concerns over president Donald Trump’s tariff proposals and a slightly stronger-than-expected US economic growth report for the fourth quarter.
At the close, the Dow Jones Industrial Average was down 0.37% at 42,299.70, while the S&P 500 declined 0.33% to 5,693.31.
The Nasdaq Composite posted the steepest loss among the major indexes, slipping 0.53% to 17,804.03.
“Donald Trump certainly knows how to grab the world’s attention and keep all eyes focussed on him and his administration,” said Danni Hewson, head of financial analysis at AJ Bell.
“Car makers are scrambling to work out how to mitigate the impact of auto tariffs due to come into place in just a week’s time.
“Although investors had been steadily pricing in import taxes, the president’s late night Oval Office address has sparked a significant sell off.”
Hewson noted that car maker stocks tumbled globally on Thursday, as had many US automakers, whose complex supply chains meant they would face a huge headache trying to mitigate the worst of the impact.
“Donald Trump says the answer is a simple one, build in America to sell in America, but building from the ground up will take years and costs will have to rise to cover the period of upheaval.
“Tesla’s share price sticks out like a sore thumb today.
“It’s pretty much the only automaker to be in positive territory because of the nature of its US operations, even though Elon Musk has warned that the impact on the business would not be trivial.”
GDP grows faster than expected in fourth quarter
In economic news, the Commerce Department reported that gross domestic product grew at an annualised rate of 2.4% in the fourth quarter, slightly above the expected 2.3% but down from 3.1% in the prior quarter.
The modest upward revision was driven by lower imports, though analysts remain cautious about first-quarter prospects amid ongoing trade tensions and weather-related disruptions.
In the labour market, initial jobless claims dipped by 1,000 to 224,000 for the week ended 22 March, slightly better than forecasts and still consistent with a tight employment environment.
Continuing claims also declined, and the four-week moving average edged lower, reinforcing the view that hiring remains resilient despite restrictive monetary policy and softening economic indicators in early 2025.
Trade data offered a partial offset to growth concerns, as the US goods trade deficit narrowed for the first time in four months.
February’s shortfall shrank by 4.9% to $147.9 billion, as exports picked up amid efforts by companies to preempt potential tariff increases.
However, the figure still came in wider than economists had anticipated.
Housing showed tentative signs of improvement, with pending home sales rising 2.0% month-over-month in February, according to the National Association of Realtors.
The increase came as mortgage rates eased slightly, though sales remained down 3.6% from a year earlier, reflecting continued caution among buyers.
Meanwhile, regional manufacturing activity showed a modest recovery.
The Kansas City Federal Reserve’s manufacturing index rose to +1 in March from -13 in February, suggesting a slight rebound in factory conditions.
Automakers in the red, Dollar Tree surges after announcing new facility
In equities, shares of major US automakers fell sharply following Donald Trump’s announcement of his proposed 25% tariff on foreign-made vehicles, while electric vehicle maker Tesla edged higher.
General Motors dropped 7.36% and Ford declined 3.88%, as investors reacted to concerns over the impact of higher tariffs on global supply chains and vehicle pricing.
In contrast, Tesla rose 0.39%, supported by its predominantly domestic production, which could shield it from potential trade disruptions.
Auto parts retailers also saw strong gains, with Advance Auto Parts up 6.74%, AutoZone rising 3.98%, and O’Reilly Automotive gaining 3.09%.
Among other retail stocks, Dollar Tree surged 11.18% after announcing a new $1.5bn revolving credit facility with JPMorgan Chase and other lenders.
The agreement, effective 21 March, would provide additional liquidity and included an option for up to $350m in letters of credit.
The facility was set to mature in 2030, with provisions for possible extensions.
Friday newspaper round-up: Energy bills, net zero, HSBC
British bill payers remain exposed to another energy crisis while facing “worryingly high” energy debts and some of the highest electricity costs in the world, parliament’s spending watchdog has warned. The public accounts committee (PAC) said ministers had not put in place sufficient safeguards to shield households against another energy crisis or taken steps to permanently reduce Britain’s energy prices. – Guardian
Canada’s prime minister has said the era of deep ties with the US “is over”, as governments from Tokyo to Berlin to Paris sharply criticised Donald Trump’s sweeping tariffs on car imports, with some threatening retaliatory action. Mark Carney warned Canadians that Trump had permanently altered relations and that, regardless of any future trade deals, there would be “no turning back”. – Guardian
Ed Miliband has been accused of failing to tackle sky-high energy bills and risking power shortages as he races to hit net zero. A report from the Commons Public Accounts Committee (PAC) said the Energy Secretary’s reviews of gas and electricity prices were taking too long – leaving consumers with bills so high that increasing numbers of people are now in debt to their suppliers. – Telegraph
The Government’s pay bill is set to soar by more than £50bn per year by the end of the decade, despite efforts to trim the size of the Civil Service. Spending on central government employees will rise from £172bn last year to £225.7bn in 2029 to 2030, according to forecasts from the Office for Budget Responsibility (OBR). – Telegraph
London-based investment bankers at HSBC were sacked on the very day they were hoping to hear news of their annual bonuses, with chief executive Georges Elhedery said to be taking a more ruthless approach to cutting costs. The dismissals were delivered on bonus day in January, traditionally when dealmakers learn the size of their annual bonuses, according to a report in the Financial Times, which said the move was regarded as uncharacteristic of the normally more paternalistic bank. – The Times
