11th Apr 2025 16:55
(Alliance News) - European stocks ended mixed on Friday, with the FTSE 100 shining as tariff worries kept a lid on enthusiasm on the mainland, while US banks traded mixed after a contrasting response to earnings.
The FTSE 100 index rose 50.93 points, 0.6%, at 7,964.18. The FTSE 250 fell just 2.56 points at 18,514.85, and the AIM All-Share rose 2.86 points, 0.4%, at 647.83.
For the week, the FTSE 100 lost 1.1%, the 250 added 0.8% and the AIM All-Share rose 1.1%.
The Cboe UK 100 rose 0.5% at 793.10, the Cboe UK 250 fell 0.2% at 16,062.84, and the Cboe Small Companies added 1.0% at 14,814.54.
In Paris, the CAC 40 fell 0.3%, while Frankfurt's DAX 40 slumped 0.9%.
The pound was quoted higher at USD1.3057 late on Friday in London, compared to USD1.2965 at the equities close on Thursday. The euro stood sharply higher at USD1.1339 against USD1.1195. Against the yen, the dollar was trading lower at JPY143.46 compared to JPY144.41.
"The euro continued its rise against the US dollar today, reaching its highest level since February 2022, surpassing 1.1473 at the peak of the rally. The euro's gains come amid uncertainty surrounding the US economy, with the rapidly escalating trade war with China and Trump's continued hesitation in making trade policy decisions. This is in addition to the diminishing safe-haven status of US Treasuries, leading to further dollar weakness," Pepperstone analyst Samer Hasn commented.
China said Friday it would raise tariffs on US goods to 125% but would ignore further levies by US President Donald Trump because it no longer makes economic sense for importers to buy from America.
After a week of market mayhem as the world's two largest economies took turns to put up trade barriers, Beijing dismissed Trump's mounting brinkmanship as a "joke" and a "numbers game".
China accused Trump of unleashing turbulence in the market with the sweeping tariffs that have hit the world and said the US "should bear full responsibility" for the chaos.
Trump has deployed sweeping tariffs, including painfully higher levies for dozens of major economies, as a stick to force manufacturers to base themselves in the US and for countries to lower barriers to US goods.
In New York, JPMorgan shares were 2.1% higher.
It reported improved first-quarter earnings, helped by rising investment banking fees, though it noted signs of caution among some clients due to the on-again, off-again US tariffs.
The New York-based universal bank warned of "considerable turbulence" in the US economy, stemming from the possibility of trade wars.
However, Morgan Stanley and Wells Fargo fell 0.8% and 4.2% on the back of their numbers.
Next week, Goldman Sachs, Bank of America and Citigroup report.
The Dow Jones Industrial Average traded 0.6% lower, the S&P 500 down 0.5%, and the Nasdaq Composite shed 0.4%.
Policymakers at the US Federal Reserve on Friday warned of higher inflation and slower growth ahead due to Donald Trump's tariff policy, which has sent shock waves through global markets.
The US president imposed sweeping import taxes on dozens of countries, only to abruptly roll many of them back to 10% after stock and bond markets reacted sharply, while leaving China with new tariffs totalling 145%.
Speaking to Yahoo Finance on Friday, Boston Fed President Susan Collins said she expects higher inflation and slower growth this year thanks to the tariffs, echoing the comments of many of her colleagues on the US central bank's rate-setting committee.
"The higher the tariffs are, the more the potential slowdown in growth as well as elevation and inflation that one would expect," she said, adding she expects inflation to rise "well above" 3% this year, but no "significant" economic downturn.
In a speech in Hot Springs, Arkansas, on Friday, St Louis Fed President Alberto Musalem said "continued vigilance" and "careful monitoring" of the incoming data was needed amid the tariff-related turbulence.
"I expect the economic expansion will continue at a more moderate pace, the supply and demand for labour will remain roughly in balance, and inflation will decline to two per cent over the medium term," said Musalem, referring to the long-term inflation target.
"However, I see the near-term risks as skewed toward inflation rising alongside slower economic growth and a further cooling of the labour market," said Musalem, who is a voting member of the Fed's rate-setting committee this year.
"I would be wary of assuming the impact of higher tariffs on inflation would be only brief or limited," he said.
Brent oil was quoted higher late in London on Friday, at USD63.43 a barrel from USD63.32 late Thursday. Gold was quoted higher at USD3,239.41 an ounce against USD3,069.25.
Fresnillo and Endeavour Mining topped the FTSE 100, tracking gold higher. The duo rose 6.5% and 6.4%, respectively.
Oil major BP fell 2.9%.
The London-based oil and gas major estimates that upstream production in the first quarter of 2025 was down from the fourth quarter of 2024.
It also noted that it expects net debt at the end of the first quarter to be around USD4 billion higher compared to the fourth quarter, "driven primarily by a working capital build, which is largely expected to reverse, reflecting seasonal inventory effects, timing of payments including annual bonus payments and payments related to low carbon assets held for sale".
Urban Logistics rose 3.9%. It said it has received a preliminary, indicative takeover proposal from LondonMetric Property.
Urban Logistics is a UK-focused logistics real estate investment trust, while LondonMetric is a FTSE100-listed real estate investment trust.
In response to recent media speculation, the board of Urban Logistics confirmed it is reviewing the proposal with its advisers. No terms have been disclosed.
The company stressed that there can be no assurance that a formal offer will be made or what the terms might be. Shareholders were advised to take no action at this stage.
Under the UK Takeover Code, LondonMetric has until 5.00pm on May 9 to either announce a firm intention to make an offer or confirm it does not plan to proceed unless an extension is granted by the takeover panel.
LondonMetric shares rose 1.7%.
Helical shares advanced 6.9%. It said it has agreed the forward sale of 100 New Bridge Street in London for GBP333 million and reported "significant activity" across its portfolio.
It expects to receive at least GBP27 million in net profit from the joint venture once the sale is completed, and said it will consider returning up to 100% of those profits to shareholders.
Monday's local corporate calendar has a trading statement from emerging markets investment manager Ashmore Group.
A quiet start to the week on the economic front has US inflation expectations at 1600 BST.
By Eric Cunha, Alliance News news editor
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