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London stocks on the FTSE 100 nudged higher in early trade on Tuesday as investors continued to mull the US-China tariff pause and digested the latest UK jobs data.
At 0845 BST, the FTSE 100 was up 0.1% at 8,609.93.
Richard Hunter, head of markets at Interactive Investor, said: “Of course, the developments between the US and China mark a brief hiatus rather than a resolution. Even at the reduced levels, tariffs remain higher than before and it remains to be seen whether the damage which has already been wrought will have longer term and even permanent implications for the reputation of the US both domestically and indeed globally.
“In addition, there are also likely to have been more immediate consequences as consumers may have retrenched and as companies have been hamstrung in making investment decisions based on what has been an extremely murky outlook.”
On home shores, figures released earlier by the Office for National Statistics showed that wage growth slowed in January to March, while the unemployment rate ticked higher.
The unemployment rate rose to 4.5% – the highest level since June to August 2021.
Meanwhile, growth in average regular earnings excluding bonuses was 5.6%, down from 5.9%. Including bonuses, earnings growth was 5.5%, down from 5.7%.
Liz McKeown, director of economic statistics at the ONS, said: “Wage growth slowed slightly in the latest period but remains relatively strong, with public and private sectors now showing little difference.
“The broader picture continues to be of the labour market cooling, with the number of employees on payroll falling in the first quarter of the year. The number of job vacancies has also fallen again, with the rate of decline increasing in the last few months.”
Elsewhere, data from the British Retail Consortium showed that a later Easter and the sunniest April on record helped UK retail sales surge last month, with growth picking up strongly after a weak showing in March.
Total retail sales rose at a year-on-year rate of 7% in April, following a 1.1% increase in March, according to the BRC-KPMG Retail Sales Monitor.
The Easter holidays, which typically result in increased spending by consumers, fell in March in 2024 but April in 2025. However, combining both months together, compared with the same two-month period the year before, sales were still up 4.3%.
In equity markets, Ladbrokes owner Entain shot to the top of the FTSE 100 after an upgrade to ‘buy’ at UBS, while RS Group surged to the top of the FTSE 250 after an upgrade to ‘buy’ at Bank of America.
Wickes racked up healthy gains as it hailed a strong start to the year, reporting a 6.9% jump in revenue for the 17 weeks to 26 April.
DCC tumbled after the sales, marketing and support services group’s full-year revenues missed expectations.
Bytes Technology was also sharply lower even as it announced a special dividend and hiked its full-year payout to shareholders after a solid full-year performance, with profits rising by a double-digit percentage.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
South32 Limited | +5.34% | +7.40 | 146.00 |
| 2 |  |
International Consolidated Airlines Group S.a. | +2.02% | +6.30 | 318.00 |
| 3 |  |
Smurfit Westrock Plc | +1.72% | +58.00 | 3,429.00 |
| 4 |  |
Rio Tinto Plc | +1.64% | +76.50 | 4,738.50 |
| 5 |  |
Marks And Spencer Group Plc | +1.47% | +5.10 | 351.20 |
| 6 |  |
Fresnillo | +1.45% | +14.50 | 1,014.00 |
| 7 |  |
Sainsbury (j) Plc | +1.41% | +3.80 | 273.60 |
| 8 |  |
Next Plc | +1.21% | +145.00 | 12,100.00 |
| 9 |  |
Wpp Plc | +1.09% | +6.60 | 612.00 |
| 10 |  |
Weir Group Plc | +1.08% | +26.00 | 2,432.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Segro Plc | -1.65% | -11.00 | 654.40 |
| 2 |  |
Aib Group Plc | -1.44% | -8.00 | 546.00 |
| 3 |  |
Haleon | -1.39% | -5.60 | 398.40 |
| 4 |  |
Imperial Brands Plc | -1.12% | -33.00 | 2,907.00 |
| 5 |  |
Unilever Plc | -1.03% | -48.00 | 4,596.00 |
| 6 |  |
Diageo Plc | -0.96% | -21.00 | 2,156.00 |
| 7 |  |
British American Tobacco Plc | -0.94% | -29.00 | 3,057.00 |
| 8 |  |
London Stock Exchange Group Plc | -0.80% | -90.00 | 11,205.00 |
| 9 |  |
Compass Group Plc | -0.73% | -19.00 | 2,596.00 |
| 10 |  |
Bp Plc | -0.68% | -2.60 | 378.00 |
US close: Stocks surge on temporary trade war truce with China
Wall Street stocks jumped on Monday with all three benchmark indices back above pre-Liberation Day levels after the US and China temporarily agreed to lower tariffs as they work on a new trade deal.
The Dow jumped 2.8% to 42,410.10, finishing at its highest mark since 26 March; the S&P 500 rose 3.3% to 5,844.19, its highest since 3 March; while the Nasdaq surged 4.4% to 18,708.34, its highest since 28 February.
The US and China are to significantly lower tariffs, it was confirmed on Monday, after a key agreement was struck in Geneva over the weekend. The world’s two largest economies will now cut levies for the next 90 days. Washington will reduce tariffs on Chinese goods to 30% from 145%, while Beijing will lower duties to 10% from 125%.
Speaking at a press conference in Geneva, US Treasury secretary Scott Bessent said: “We want more balanced trade, and I think both sides are committed to achieving that.”
Global stock markets reacted positively to the news, along with the dollar, while WTI crude gained 1.5% to $61.95 a barrel. However, gold, a safe-haven asset that has soared in recent weeks, fell back 3.5% to $3,228 an ounce.
The news has “given investors right around the globe a chance to exhale – though not to relax completely”, according to AJ Bell’s head of financial analysis Danni Hewson, who pointed to the fact that the S&P 500 and Nasdaq are both still well below levels seen earlier in the year with investor confidence still fragile.
“It is hoped that after the 90 days current tariff levels will either be maintained or reduced further. But there are no guarantees, and continued uncertainty creates a quandary for many US companies,” she said.
No major economic data was scheduled for release on Monday, with eyes starting to turn to the all-important US inflation report on Tuesday. According to consensus estimates, the CPI index is expected to have risen by 0.3% in April after a 0.1% decline in March, though both the annual rates of headline and core inflation are tipped to have held steady at 2.4% and 2.8% respectively.
Market movers
Banking stocks were rising strongly on improved economic prospects following the US-China trade talks, including Bank of America, Citigroup, Goldman Sachs, Wells Fargo and JPMorgan.
Tech heavyweights Apple, Nvidia, Meta Platforms, Hewlett Packard and Microsoft were benefitting from a return in risk appetite, while fashion and sporting goods names like Nike, Lululemon, Footlocker and Estée Lauder jumped on an improved supply chain outlook.
Pharma stocks initially fell on the news that Trump would sign an executive order aimed to slash prescription drug prices, but share prices recovered quickly after the restrictions were deemed softer than expected. Moderna, Merck and Eli Lilly all finished higher.
Meanwhile, US-listed shares of Canada’s Pan American Silver slumped 16% after the company agreed to acquire smaller rival MAG Silver in a $2.1bn deal.
Tuesday newspaper round-up: Pension funds, Lloyds Bank, Thames Water
Keir Starmer’s blueprint for curbing immigration could exacerbate skills shortages in sectors that would “fall over” without immigrant labour, the prime minister has been told. Starmer said that businesses in particular had become “almost addicted to importing cheap labour” rather than investing in UK talent. Trade bodies and businesses retorted on Monday by saying that new restrictions could only work if accompanied by urgent measures to help businesses recruit and train UK residents. – Guardian
The bosses of 17 of the UK’s biggest pension funds have struck a deal with the government that it claims will release up to £50bn worth of investments, with at least half earmarked for British assets including clean energy projects and homegrown startups. Fund managers including Aviva, Legal & General, M&G, Phoenix and the Universities Superannuation Scheme have agreed to sign a new “Mansion House accord” that will lead to at least 10% of their workplace pension schemes being invested in private market assets by 2030. – Guardian
Lloyds Bank has snubbed Rachel Reeves’s push to get pension funds to invest more in the UK, dealing a blow to the Chancellor’s bid to boost growth. The lender’s pension arm Scottish Widows has refused to sign up to a pact that will see Britain’s largest retirement funds invest £50bn in infrastructure, property and private equity by the end of the decade – half of which will be in the UK. – Telegraph
After a stellar career helping to oversee companies on behalf of the government, or sitting on high-profile boards, Sir Adrian Montague finds himself in front of MPs on Tuesday to explain how he is going to pull off his biggest coup yet. The 77-year-old chairman of Thames Water has been called before the environment select committee of the Commons. – The Times
President Trump’s tariffs will put downward pressure on UK inflation, the Bank of England rate-setter Megan Greene has said, explaining her decision to vote for a quarter-point interest rate cut last week. Speaking at the Bank of England Watchers’ Conference, Greene, an external member of the central bank’s monetary policy committee (MPC), said that “on net” a global trade war caused by Trump’s import levies would be disinflationary for the UK but added that this was “pretty uncertain” as there were both “inflationary and disinflationary forces” at play. – The Times
