29th May 2025 17:05
(Alliance News) - Blue-chip stocks in Europe ended lower on Thursday, despite a day which started promisingly, after US President Donald Trump's tariff agenda received a blow.
A US court blocked most of Trump's sweeping import tariffs from going into effect, ruling that the president had overstepped his authority with the across-the-board global levies. The Trump administration filed an appeal.
European stocks started strongly, but that enthusiasm waned as the day wore on, while London's FTSE 100 was also hurt by a spate of shares going ex-dividend.
The FTSE 100 index closed down 9.56 points, 0.1%, at 8,716.45. The FTSE 250 rose 51.39 points, 0.3%, to 20,997.58, and the AIM All-Share rose 3.26 points, 0.4%, at 744.84.
The Cboe UK 100 ended down 0.1% at 869.26, the Cboe UK 250 rose 0.1% to 18,497.05, and the Cboe Small Companies rose 0.1% to close at 16,743.78.
In European equities on Wednesday, the CAC 40 in Paris ended 0.1% lower, while the DAX 40 in Frankfurt slipped 0.4%.
"The stock market rally from earlier on Thursday has faded," XTB analyst Kathleen Brooks commented.
"The latest legal challenge to Trump's tariffs could be the start of a long wrangle between the courts and the White House, and tariffs may still be implemented."
White House economic advisor Peter Navarro told Bloomberg the Trump administration has a "strong case".
In New York, the Dow Jones Industrial Average was flat, the S&P 500 was up 0.3%, and the Nasdaq Composite added 0.7%.
However, stock market futures had earlier pointed to more bullish trade on Wall Street.
Nvidia shares were up 4.8% in New York after its earnings impressed. The Santa Clara, California-based chipmaker said net income rose 26% to USD18.78 billion in the first quarter ended April 27 from USD14.88 billion a year prior.
Revenue climbed 69% to USD44.06 billion from USD26.04 billion, ahead of estimates.
Stephen Innes, managing partner at SPI Asset Management, said: "Nvidia's blockbuster quarter delivered exactly what markets hoped for: confirmation that, despite facing intensifying geopolitical storms, the reigning AI chip monarch remains resilient, agile, and firmly entrenched as the undisputed cornerstone of the AI megatrends."
The pound was up at USD1.3488 late on Thursday afternoon in London, compared to USD1.3465 at the equities close on Wednesday. The euro stood higher at USD1.1363, against USD1.1294. Against the yen, the dollar was trading lower at JPY144.22 compared to JPY144.95.
The yield on the US 10-year Treasury was quoted at 4.43%, narrowing from 4.49%. The yield on the US 30-year Treasury was quoted at 4.93%, easing from 4.99%.
The US economy declined at a softer pace than initially expected, according to a second estimate outlined by the Bureau of Economic Analysis on Thursday.
The BEA said the US economy contracted 0.2% on an annualised quarter-on-quarter rate in the first three months of 2025. The advance estimate had put the decline at 0.3%.
In the fourth quarter, the economy increased by 2.4%.
The first quarter decline, the first GDP fall since the start of 2022, came amid a slew of tariff worries, which saw imports grow. Imports are negative to the GDP calculation, the BEA added.
In London, Auto Trader slumped 11%. It reported pretax profit of GBP375.7 million for its financial year that ended March 31, rising 8.8% from GBP345.2 million the year before.
Revenue grew 5.3% to GBP601.1 million from GBP570.9 million.
Revenue was just short of company-compiled market consensus of GBP606.4 million, though within the range of forecasts of GBP600.8 million to GBP610.6 million.
A strong used car market hit Auto Trader's progress, Wealth Club analyst Charlie Huggins explained.
"Demand significantly outstripped supply. As a result, cars are selling like hot cakes, reducing the need for retailers to buy advertising slots from Auto Trader," Huggins added.
A host of FTSE 100 constituents went ex-dividend, hitting the large-cap index. National Grid fell 3.8%, as it was among those whose shares went ex-dividend, meaning new buyers would not qualify for the latest payout.
Elsewhere in London, Hollywood Bowl slumped 10%. It reported lower profit despite higher revenue in the first half of the year, and it noted a short-term hit from recent sunny weather in the UK that kept people out of bowling alleys.
The ten-pin bowling operator said pretax profit declined 4.0% to GBP28.3 million in the six months to the end of March from GBP29.5 million a year ago.
Revenue grew 8.4% to GBP129.2 million from GBP119.2 million.
The biggest risers on the FTSE 100 were Segro, up 27.80 pence at 701.00p, Fresnillo, up 37.00p at 1,171.00p, ConvaTec, up 8.60p at 290.40p, Glencore, up 5.85p at 277.90p, and Legal & General, up 4.20p at 246.80p.
The biggest fallers on the FTSE 100 were Auto Trader, down 101.40p at 798.60p, National Grid, down 40.50p at 1,031.00p, Coca-Cola HBC, down 94.00p at 3,842.00p, Severn Trent, down 62.00p at 2,660p, and Kingfisher, down 6.10p at 279.20p.
Brent oil bought USD63.41 a barrel at the time of the London equities close on Thursday, down from USD64.43 late Wednesday. Gold was higher at USD3,316.41 an ounce against USD3,296.24.
Friday's economic events calendar has a US core personal consumption expenditures index reading at 1330 BST. Core PCE is the Federal Reserve's preferred inflationary gauge. The US data follows a German consumer price index reading at 1300 BST.
By Eric Cunha, Alliance News news editor
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