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London stocks on the FTSE 100 fell in early trade on Wednesday despite better-than-expected UK inflation data, with sentiment dented after US chipmaker Nvidia warned it will take a $5.5bn hit from Donald Trump’s trade war with China.
At 0900 BST, the FTSE 100 was down 0.5% at 8,211.69.
Steve Clayton, head of equity funds at Hargreaves Lansdown: “Asian markets were pressured overnight after the US placed additional curbs on Nvidia Corp’s ability to ship advanced silicon chips into China. Shipments of Nvidia’s H20 chips, previously allowed into China are now to be restricted, creating uncertainty about just where the US/China trading relationship was headed.
“Technology companies in Asia led the declines, with Chinese tech companies listed in Hong Kong tumbling by over 4%. Nvidia itself dropped 6% in US after-hours trading. Japan’s Topix Index dropped over 1% before paring losses, whilst the Hang Seng index in HK fell by 2.2%. Shares in Korea and Taiwan also declined.
“The US also announced a probe into the trading of critical minerals and rare earths to see if levies needed to be introduced. In the current environment, few would bet that the probe will conclude that no, they do not.”
On home shores, data from the Office for National Statistics showed that consumer price inflation rose 2.6% in the year to March, down from 2.8% in February and coming in below expectations of 2.7% growth.
The largest downward contributions came from recreation and culture, and motor fuels, the ONS said. The largest upward contribution came from clothing.
Core inflation – which excludes energy, food, alcohol and tobacco – rose by 3.4% in the year to March, down from 3.5% the month before.
ONS chief economist Grant Fitzner said: “Inflation eased again in March, driven by a variety of factors including falling fuel prices and unchanged food costs compared with the price rises we saw this time last year.
“The only significant offset came from the price of clothes, which rose strongly this month, following the unusual decrease in February.”
In equity markets, Bunzl tumbled as it lowered its guidance for 2025 after a worse-than-expected start to the year, with profits down “significantly” in the first quarter due to a challenging economic backdrop.
The international distribution and services group said it now expects only a “moderate” increase in revenues at constant exchange rates this year, down from an earlier projection for “robust growth”, while the operating margin is now expected to reduce to 8.0% compared with the initial targets for no change from 8.3% in 2024.
Barratt Redrow gained as it reported a stable trading performance for the quarter ended 30 March, with a slight year-on-year increase in its core private reservation rate and a total of 3,717 home completions, keeping it on track to deliver full-year guidance of 16,800 to 17,200 homes.
Oxford Instruments jumped after saying it delivered a “strong” full-year performance, in line with expectations.
Outsourcer Mitie rallied as it lifted its full-year profits guidance following “continued good momentum” in the fourth quarter, and announced the launch of a £125m share buyback.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Endeavour Mining Plc | +6.14% | +126.00 | 2,178.00 |
| 2 |  |
Fresnillo | +2.93% | +31.00 | 1,089.00 |
| 3 |  |
Barratt Redrow Plc | +1.71% | +7.30 | 435.00 |
| 4 |  |
Severn Trent Plc | +1.70% | +46.00 | 2,745.00 |
| 5 |  |
Centrica Plc | +1.52% | +2.25 | 150.00 |
| 6 |  |
Coca-cola Europacific Partners Plc | +1.34% | +90.00 | 6,800.00 |
| 7 |  |
Tesco Plc | +1.24% | +4.30 | 349.80 |
| 8 |  |
National Grid Plc | +1.14% | +12.00 | 1,066.50 |
| 9 |  |
Sant Uk.8fepf | +1.09% | +1.50 | 138.50 |
| 10 |  |
Aib Group Plc | +1.03% | +5.00 | 489.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bunzl Plc | -22.87% | -704.00 | 2,374.00 |
| 2 |  |
South32 Limited | -4.01% | -5.40 | 129.20 |
| 3 |  |
Informa Plc | -2.94% | -21.00 | 694.00 |
| 4 |  |
Rentokil Initial Plc | -2.81% | -9.40 | 324.80 |
| 5 |  |
Smurfit Westrock Plc | -2.76% | -87.00 | 3,061.00 |
| 6 |  |
Wpp Plc | -2.67% | -14.80 | 539.20 |
| 7 |  |
Smith & Nephew Plc | -2.24% | -22.20 | 971.00 |
| 8 |  |
Flutter Entertainment Plc | -2.12% | -370.00 | 17,100.00 |
| 9 |  |
Ashtead Group Plc | -2.10% | -83.00 | 3,860.00 |
| 10 |  |
Antofagasta Plc | -2.05% | -31.50 | 1,505.00 |
US close: Stocks lower as Q1 earnings season begins to pick up steam
Major indices headed south on Tuesday as traders digested a fresh batch of Q1 earnings from more of the nation’s biggest names in banking.
At the close, the Dow Jones Industrial Average was down 0.38% at 40,368.96, while the S&P 500 lost 0.17% to 5,396.63 and the Nasdaq Composite saw out the session 0.05% softer at 16,823.17.
The Dow closed 155.83 points lower on Tuesday, taking a modest bite out of gains recorded in the previous session as surprise tariff exemptions gave sentiment a leg-up.
Tuesday’s primary focus was earnings from banking giants Bank of America and Citigroup, with the former topping analysts’ estimates on the back of better-than-expected interest income and trading, while the latter’s results also beat analysts’ estimates thanks to gains in fixed income and equities trading.
Elsewhere, pharmaceutical giant Johnson & Johnson hiked its quarterly dividend payout by 4.8% on Tuesday as it delivered Q1 revenue and EPS that came in above estimates on the Street at $21.89bn and $2.77 per share, respectively.
In terms of data, US import prices decreased to 141.80 in March, according to the Bureau of Labor Statistics, down from 142 in February, while export prices were unchanged month-on-month at 152.40.
On another note, the Federal Reserve‘s New York Empire State manufacturing index rose to -8.1 in April, up from -20 in March, which was the lowest reading since May 2023, beating expectations for a more modest increase to -14.5.
Wednesday newspaper round-up: UK energy summit, Grant Thornton, Nvidia
China is to snub a major UK summit on energy security next week, the Guardian has learned, amid a growing row over the country’s involvement in UK infrastructure projects. The US will send a senior White House official to the 60-country summit, to be co-hosted with the International Energy Agency. Leading oil and gas companies are also invited, along with big technology businesses, and petrostates including Saudi Arabia, Qatar and the United Arab Emirates. – Guardian
Wealthier households could be made to shoulder higher costs for running and upgrading the UK’s network of energy cables and pipes to help low-income bill payers under new plans to be considered this summer. The proposals could mean that high-income households will pay more via the standing charge on their energy bills, while those who are not in work or are on low pay are charged a discounted rate. – Guardian
Grant Thornton is encouraging staff to use trains instead of planes when travelling abroad as part of its effort to contribute to the net zero push. The accountancy giant has launched a new travel booking system that will “encourage environmentally conscious travel choices”, forming part of its attempt to slash emissions by up to 90c by 2045. – Telegraph
Peers are preparing an attempt to block Angela Rayner’s so-called “pub banter crackdown” over fears it will hinder free speech. Ahead of a parliamentary hearing this month, members in the House of Lords are battling to shield pubs and universities from a new rule forcing them to protect staff from third-party harassment. – Telegraph
Nvidia said it expects to take a $5.5 billion hit as President Trump clamps down on the sale of powerful artificial intelligence chips to China. The US chip designer at the centre of the AI boom said the US government was introducing new restrictions on its chip exports over fears they could be used to help China build a supercomputer. – The Times
