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UK markets jumped on Wednesday morning, sending the FTSE 100 to its highest level in nearly three weeks as trade tensions eased, with commodity stocks and financial names providing a big lift.
The FTSE 100 was up 1.4% at 8,441.20 within the first hour of trade in London, on track to finish at its highest level since 3 April – the day after Donald Trump first unveiled sweeping tariffs on America’s trading partners.
Major indices across the US and Asia put in gains of 2% or more on Tuesday as traders grew optimistic that US-China trade tensions could ease soon.
Treasury Secretary Scott Bessent said there “will be a de-escalation” in the White House’s trade war with China. “No one thinks the current status quo is sustainable,” he said. Bessent said that while negotiations had not yet begun, a deal was still with Beijing was still possible.
Trump also said on Tuesday he had no plans to fire Federal Reserve chair Jerome Powell only days after calling him a “major loser” for not cutting interest rates. The central banker’s said last week that the administration’s tariff policies posed inflationary risks.
“While the news is welcome, the sheer changeability of the Trump administration makes life impossible for investors. There remains the risk that policy will u-turn once again, and in the face of this the ‘Sell US’ trade seems set to continue,” said Chris Beauchamp, chief market analyst at IG.
“Uncertainty levels remain off the charts, meaning investors will keep looking for places where their money is less at risk from the whims of the White House.”
After a quiet day for economic data, the calendar picks up on Wednesday, with UK public sector borrowing figures released early on, and a host of purchasing managers’ indices (PMIs) across the eurozone, UK and US due out later in the morning.
Miners rise but Fresnillo underperforms
Mining stocks were performing well with the exception of precious metals groups, with heavyweights Glencore, Anglo American and Antofagasta among the best performers as macro concerns eased. Financial stocks, which had recently also been weighed down by weaker economic prospects on the back of escalating trade tensions, also gained, including HSBC, Standard Chartered and Barclays.
Leading the fallers was Fresnillo which fell 8% after reporting a 10% decline in attributable silver production and a 24% drop in gold output in the first quarter, compared with three months earlier.
Smaller peer Hoshchild dropped 13% after disappointing with a first-quarter production update, reporting that operations at the Mara Rosa project in Brazil were affected by adverse weather conditions in April. Meanwhile, Endeavour was also falling sharply as gold prices slumped 2.8%, pulling back after hitting fresh record highs the previous session.
Heading the other way was specialty chemicals outfit Croda, jumping 9% after reporting an 8% increase in first-quarter sales and reiterating its full-year profit forecasts. While acknowledging increased geopolitical uncertainty and the introduction of global trade tariffs, the company said its localised manufacturing and procurement strategy provided insulation, adding that it was assessing the impact with plans to apply a tariff surcharge if needed.
Energy major BP was also putting in a decent performance, up 5%, after hedge fund Elliott disclosed a stake of more than 5% and raised the pressure on management to increase spending cuts and improve free cash flow.
Shares in fast fashion retailer Boohoo were rising after Shore Capital upgraded its rating on the stock from ‘sell’ to ‘hold’ following a 35% slump over the past five months.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Antofagasta Plc | +6.71% | +105.00 | 1,670.50 |
| 2 |  |
Standard Chartered Plc | +6.26% | +64.00 | 1,086.50 |
| 3 |  |
Anglo American Plc | +6.17% | +125.50 | 2,159.50 |
| 4 |  |
Glencore Plc | +5.09% | +13.05 | 269.35 |
| 5 |  |
Bp Plc | +4.97% | +17.85 | 376.80 |
| 6 |  |
Crh Plc | +4.83% | +304.00 | 6,598.00 |
| 7 |  |
Carnival Plc | +4.75% | +57.00 | 1,257.00 |
| 8 |  |
Hsbc Holdings Plc | +4.70% | +37.60 | 837.90 |
| 9 |  |
Barclays | +4.30% | +12.05 | 292.05 |
| 10 |  |
International Consolidated Airlines Group S.a. | +3.92% | +9.90 | 262.70 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Fresnillo | -6.21% | -64.50 | 974.50 |
| 2 |  |
Reckitt Benckiser Group Plc | -5.60% | -277.00 | 4,673.00 |
| 3 |  |
Wheaton Precious Metals Corp. | -3.28% | -210.00 | 6,200.00 |
| 4 |  |
Severn Trent Plc | -1.92% | -53.00 | 2,708.00 |
| 5 |  |
Vodafone Group Plc | -1.66% | -1.20 | 71.00 |
| 6 |  |
Haleon | -1.63% | -6.30 | 380.10 |
| 7 |  |
Sainsbury (j) Plc | -1.60% | -4.20 | 258.40 |
| 8 |  |
Bae Systems Plc | -1.55% | -26.50 | 1,679.00 |
| 9 |  |
Marks And Spencer Group Plc | -1.54% | -6.30 | 403.20 |
| 10 |  |
National Grid Plc | -1.14% | -12.50 | 1,080.50 |
US close: Dow reverses Monday’s losses on trade war optimism
Major indices closed sharply higher on Tuesday as traders grew optimistic that US-China trade tensions could ease soon.
At the close, the Dow Jones Industrial Average was up 2.73% at 39,210.93, while the S&P 500 advanced 2.82% to 5,303.85 and the Nasdaq Composite saw out the session 2.71% firmer at 16,300.42.
The Dow closed 1,040.52 points higher on Tuesday, reversing losses recorded in the previous session amid heightened tensions between the White House and the Federal Reserve Bank as Donald Trump branded Jerome Powell a “major loser” and economic advisor Kevin Hassett stated the administration was currently looking into his possible “termination”.
Stocks closed higher on Tuesday, with the blue-chip Dow Jones snapping a four-session losing streak as news broke that Treasury Secretary Scott Bessent had said there “will be a de-escalation” in the White House’s trade war with China. “No one thinks the current status quo is sustainable,” he said.
However, Bessent also stated that if America was to walk out the door of negotiations and sign “something in two or three years that looked like that”, he reckons that could be considered “a huge win”.
On Tuesday’s macro slate, the Richmond Federal Reserve‘s manufacturing index plummeted to -13 in April, down from March’s -4 reading and far worse than analysts’ estimates of -6, with the shipments index falling to -17 from -7 and new orders dropping from 5 to -17.
In the corporate space, Verizon earnings came in ahead of Wall Street estimates, as did quarterly figures from Lockheed Martin and 3M, while Halliburton fell short of Q1 earnings estimates despite reporting revenues that topped expectations.
After the close, Tesla reported quarterly earnings that missed expectations on both the top and the bottom line, with adjusted earnings per share of $0.27 on revenues of $19.34bn, short of analyst estimates of $0.34 per share and $21.11bn.
Wednesday newspaper round-up: Tesla, IMF, China tariffs…
The Tesla chief executive, Elon Musk, said he will start pulling back from his role at the so-called “department of government efficiency” starting in May. Musk’s remarks came as the company reported a massive dip in both profits and revenues in the first quarter of 2025 amid backlash against his role in the White House. On an investor call, Musk said the work necessary to get the government’s “financial house in order is mostly done”. – The Guardian
The International Monetary Fund has called on central banks to “build on their independence” after President Trump intensified attacks on the US Federal Reserve, raising fears about political interference in monetary policy. Pierre-Olivier Gourinchas, chief economist of the IMF, said on Tuesday that it was “critical” for central bankers to have credibility when managing inflation, without explicitly referring to the spat between the Fed and the US president which has escalated in the past week. – The Times
Donald Trump said during a White House news conference that high tariffs on goods from China will “come down substantially, but it won’t be zero”. Trump’s remarks were in response to earlier comments on Tuesday by treasury secretary Scott Bessent, who said that the high tariffs were unsustainable and that he expects a “de-escalation” in the trade war between the world’s two largest economies. – The Guardian
British Steel has said it will end a consultation on up to 2,700 redundancies, after the UK government took control of the firm earlier this month. Prime Minister Keir Starmer previously recalled MPs from their spring recess so Parliament could pass emergency legislation allowing the government to take operational control of British Steel. – The Independent
Santander is plotting to ditch its scandal-hit motor finance unit in a shake-up which could pave the way for the bank to exit the UK entirely. The Spanish lender is seeking approval to separate its British car finance division – which is subject to a wave of possible litigation linked to the ongoing car loan mis-selling case – from the rest of its UK banking business. – The Telegraph
Factory owners will be forced to begin laying off staff within “months” unless Sir Keir Starmer can strike a trade deal with Donald Trump, MPs have been warned. On Tuesday, industry lobby group Make UK said tariffs imposed on foreign imports to the US were hurting demand for British-made products. Without a trade deal, the drop in orders would leave domestic manufacturers with no choice but to start cutting back production and staff numbers, the business and trade select committee was told. – The Telegraph
