30th Apr 2025 07:48
(Alliance News) - The FTSE 100 was set to open higher on Wednesday, with optimism increased somewhat after a move from Donald Trump to soften tariffs on carmakers.
Still, Pepperstone's Michael Brown commented: "We remain in a period of inertia, as the 90-day pause on 'reciprocal' tariffs rolls on, uncertainty remains elevated, and concrete progress towards longer-lasting trade deals remains elusive.
"A jam-packed calendar also lies ahead this week...with anticipation ahead of that plethora of event risk also helping to keep a lid on conviction across the board."
He added that "my overall biases remain the same – namely, rally selling in both equities and the dollar amid continued outflows from the US, while also buying the dip in gold, which remains the only real haven in the present unstable political, and geopolitical environment".
In UK news, annual house price growth slowed in April and prices decreased faster than expected on a monthly basis.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 4.1 points, 0.1%, at 8,467.56
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Hang Seng: up 0.4% at 22,102.28
Nikkei 225: up 0.6% at 36,043.83
S&P/ASX 200: up 0.7% at 8,126.20
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DJIA: closed up 300.03 points, 0.8%, at 40,527.62
S&P 500: closed up 0.6% at 5,560.83
Nasdaq Composite: closed up 0.6% at 17,461.32
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EUR: lower at USD1.1394 (USD1.1400)
GBP: lower at USD1.3399 (USD1.3407)
USD: higher at JPY142.58 (JPY142.18)
GOLD: lower at USD3,307.75 per ounce (USD3,312.17)
OIL (Brent): lower at USD62.59 a barrel (USD64.48)
(changes since previous London equities close)
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ECONOMICS
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Wednesday's key economic events still to come:
11:00 CEST eurozone GDP
09:55 CEST Germany unemployment
10:00 CEST Germany GDP
14:00 CEST Germany CPI
11:00 BST Ireland CPI
11:00 BST Ireland unemployment
10:30 EDT US EIA crude oil stocks
08:30 EDT US employment cost index
08:30 EDT US personal consumption expenditures
08:30 EDT US GDP
08:30 EDT US flash quarterly personal consumption expenditures
09:45 EDT US Chicago PMI
10:00 EDT US pending home sales
08:15 EDT US ADP unemployment
08:30 EDT Canada GDP
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The annual rate of UK house price growth slowed to 3.4% in April, from 3.9% in March, and house prices decreased on-month by 0.6% to GBP270,752 from GBP271,316, according to data from Nationwide. The monthly decrease surpassed the consensus forecast of a 0.1% decline. The monthly index posted 539.3 for April, down from 542.4 in March. "The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month. Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations," Nationwide Chief Economist Robert Gardner said. "The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays. Nevertheless, activity is likely to pick up steadily as summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive."
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US President Trump moved Tuesday to soften tariffs on carmakers, sparking cautious optimism in an industry that has been on tenterhooks as it awaits details on the fast-evolving policy. Trump signed an executive order to limit the impact of overlapping tariffs on carmakers. He also released a proclamation that gives the industry a two-year grace period to move supply chains back to the US and reduce "American reliance on imports of foreign automobiles and their parts." "We just wanted to help them during this little transition...Short term," Trump said. Besides a 25% tariff on finished imported cars, the industry has also been affected by Trump's 25% tariff on steel and aluminium. Automakers are also set to face new tariffs on foreign auto parts expected to take effect on May 3. Trump's new policy means that a company will not face both a 25% levy for an imported vehicle and 25% on steel or aluminium; the importer would pay the higher of the two levies, but not both, a Commerce official said. The other change is that companies that import parts for vehicles assembled in the US would be able to offset 3.75% of a vehicle's list price in the first year and 2.5% in the second year.
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China's manufacturing activity shrank in April according to the National Bureau of Statistics. The purchasing managers' index – a key measure of industrial output – came in at 49.0 in April, below the 50-point mark that separates growth and contraction. The reading for April was down from March's 50.5, the highest in 12 months. The reading also represented a steeper decline than the 49.7 forecast by a Bloomberg survey. "In April, affected by factors such as a high base from earlier rapid manufacturing growth and a sharp shift in the external environment, the manufacturing PMI fell," NBS statistician Zhao Qinghe said in a statement. The non-manufacturing PMI, which measures activity in the services sector, came in at 50.4, down from March's 50.8.
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China's manufacturing sector expanded at a slower pace in April, S&P Global reported on Wednesday. The Caixin China general manufacturing purchasing managers' index eased to 50.4 in April, down from 51.2 in March. This latest reading exceeded the consensus forecast of 49.9 as cited by FXStreet.
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BROKER RATING CHANGES
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Deutsche Bank Research cuts DCC to 'hold' (buy) - price target 5,500 (6,000) pence
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DZ Bank raises BP to 'hold' (sell) - fair value 360 (405) pence
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Berenberg starts Galliford Try with 'buy' - price target 470 pence
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COMPANIES - FTSE 100
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Barclays reported its first-quarter results. Pretax profit rose on-year to GBP2.72 billion from GBP2.28 billion, while total income rose to GBP7.71 billion from GBP6.95 billion. Credit impairment charges increased to GBP600 million from GBP500 million. Group net interest income rose 14% to GBP3.52 billion from GBP3.07 billion. Group return on tangible equity increased to 14.0% from 12.3% and Barclays forecasts a full-year RoTE of about 11%. Barclays also increased its guidance for group net interest income from about GBP12.2 billion to greater than GBP12.5 billion.
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COMPANIES - FTSE 250
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Aston Martin Lagonda released its first-quarter results. Revenue fell 13% annually to GBP233.9 million from GBP267.7 million, but the company's pretax loss narrowed to GBP79.6 million from GBP138.8 million. Its adjusted loss before interest and tax widened, however, to GBP64.5 million from GBP57.1 million. Total wholesale volumes rose 1% to 950 vehicles from 945. "As guided, Q1 wholesale volumes were in line with the prior year and retail volumes materially outpaced wholesales, reflecting our disciplined approach to production and stock optimisation," commented Chief Executive Adrian Hallmark. "Core average selling price increased by 10%, demonstrating the positive impact of our recently launched range of ultra-luxury high performance models." Also, Aston Martin said its full-year guidance remains unchanged. "We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US while leveraging the stock held by our US dealers," Hallmark said. "We remain vigilant in monitoring events and will respond to changes in the operating environment as they materialise."
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OTHER COMPANIES
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PureTech Health announced its results for 2024 which CEO Bharatt Chowrira called "a defining year". Total revenue rose on-year to USD4.8 million from USD3.3 million. Pretax profit was USD23.8 million, against a loss of USD36.1 million for 2023. This included a USD151.8 million gain on deconsolidation of subsidiary, up from USD61.8 million, and a USD13.1 million gain on investments in notes from associates, against a USD27.6 million loss in 2023. "Our unique hub-and-spoke model delivered transformative progress across our Wholly-Owned and Founded Entity programs, advancing our mission and generating meaningful value for patients and shareholders," commented Chowrira. He continued: "As we look ahead, our focus remains clear: to execute with discipline, continue to harness our highly productive innovation R&D engine with high capital efficiency, maintain a strong balance sheet, and unlock the full potential of our programs to drive long-term patient impact and shareholder value. We are proud of what we achieved in 2024-and we are energised by the opportunities that lie ahead."
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By Emma Curzon, Alliance News reporter
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Related Shares:
BarclaysAston Martin LagondaPureTechDCCBPGalliford Try