30th May 2025 17:05
(Alliance News) - The FTSE 100 outperformed in a mixed day for European equities, after the US Court of Appeals temporarily reinstated Donald Trump's tariffs.
The FTSE 100 index closed up 55.93 points, 0.6%, at 8,772.38. The FTSE 250 ended up 30.43 points, 0.1%, at 21,028.01, and the AIM All-Share closed up 1.84 points, 0.3%, at 746.68.
For the week, the FTSE 100 rose 0.6%, the FTSE 250 and the AIM each added 1.5%.
The Cboe UK 100 ended up 0.5% at 873.32, the Cboe UK 250 rose 0.4% at 18,564.42, and the Cboe Small Companies edged marginally higher to 16,747.09.
In European equities on Friday, the CAC 40 in Paris fell 0.4%, while the DAX 40 in Frankfurt gained 0.3%.
The pound was quoted down at USD1.3476 late on Friday afternoon in London, compared to USD1.3488 at the equities close on Thursday. The euro stood lower at USD1.1348, against USD1.1363. Against the yen, the dollar was trading flat at JPY144.23 compared to JPY144.22.
The yield on the US 10-year Treasury narrowed to 4.41% from 4.43% a day earlier. The yield on the US 30-year Treasury slimmed slightly to 4.92% from 4.93%.
A US federal appeals court on Thursday issued a temporary stay of a court ruling that would have blocked many of President Donald Trump's sweeping tariffs, to allow the appeals process to continue.
The order from the US Court of Appeals for the Federal Circuit, known as an administrative stay, means for the time being, the tariffs remain in effect and will not be blocked after 10 days as ordered by the lower court.
US President Donald Trump signalled renewed trade tensions with China on Friday, arguing that Beijing had "violated" a deal to de-escalate tariffs, at a time when both sides appeared deadlocked in negotiations.
Trump's post on his Truth Social platform came hours after US Treasury Secretary Scott Bessent said that trade talks with China were "a bit stalled," in an interview with broadcaster Fox News.
The world's two biggest economies had agreed this month to temporarily lower staggeringly high tariffs they had imposed on each other, in a pause to last 90 days, after talks between top officials in Geneva.
But on Friday, Trump wrote: "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US," without providing further details.
Asked about the post on CNBC, US Trade Representative Jamieson Greer took aim at Beijing for continuing to "slow down and choke off things like critical minerals."
In New York, the Dow Jones Industrial Average was down 0.1% at the time of the London equities close on Friday. The S&P 500 was 0.3% lower and the Nasdaq Composite fell 0.6%.
US inflation pressure continued to ease last month, according to the Federal Reserve's preferred gauge on Friday.
The Bureau of Economic Analysis reported that the core personal consumption expenditures index rose 2.5% in April from a year before, cooling from 2.7% in March. The reading, representing the tamest rate of US price inflation in over four years, landed in line with the FXStreet-cited market consensus.
The last time core PCE index inflation was lower was in March 2021.
XTB analyst Kathleen Brooks commented: "This data is unlikely to be an important component of Fed policy going forward for two reasons. Firstly, the gauge of prices from April is too out of date and does not reflect the impact of tariffs, since they were paused in mid-April. Secondly, tariffs are so fluid right now that the impact on inflation is difficult to gauge.
"A more impactful gauge for monetary policy right now is the labour market. If job creation dips and if the unemployment rate rises, that could be a trigger for rate cuts, while the Fed waits to see the impact from tariffs on inflation."
The consumer price inflation rate in Germany was steady in May, amid slower falls in energy prices, but a slight ebbing of core pressure, flash estimates from the Federal Statistical Office showed Friday.
According to Destatis, the consumer price index rose 2.1% in May from a year earlier, matching April's rate and coming in line with the FXStreet-cited consensus.
Compared with the previous month, prices ticked up by 0.1%, after rising 0.4% in April.
On a harmonised basis, used for eurozone comparisons, the consumer price inflation rate was also 2.1% annually and 0.2% month-on-month. The annual harmonised rate cooled from 2.2%, but landed ahead of the FXStreet-cited expectations of a faster slowdown to 2.0%.
Analysts at ING commented: "The just-released flash estimate of German inflation for May brought some more relief for the European Central Bank.
"The process of gradual disinflation is continuing. Even if the latest developments in the trade and tariff saga have somewhat strengthened the case for a pause next week, arguments for a rate cut are much stronger."
The ECB decides on interest rates on Thursday.
In London, M&G shares shot up 5.5%. It entered a new long-term strategic partnership with Japanese life insurer Dai-ichi Life Holdings on asset management and life insurance.
The London-based asset manager will become Dai-ichi Life's preferred asset management partner in Europe, with the goal of delivering "substantial" new business flows for both companies.
Dai-ichi also intends to acquire around a 15% stake in M&G, which, upon completion, would give Dai-ichi the right to appoint a director to the board of M&G. "It is expected that M&G will be an affiliate of Dai-ichi Life HD for Japanese accounting purposes," M&G said.
Beazley and Hiscox added 1.3% and 0.6%. Berenberg resumed coverage of the insurers at 'buy'.
On AIM, hVIVO sank 46%. It reported the cancellation of a "significant" human challenge trial contract.
The London-based contract research organisation testing vaccines for infectious and respiratory diseases also noted a postponement and a small study cancellation.
The firm suggested business was cooling due to "uncertainties in the pharmaceutical industry and the continued depressed biotech financing market".
hVIVO said further cancellations were unlikely, as all but one of its contracts for 2025 have commenced, and noted that an updated outlook will be provided later in the year.
The biggest risers on the FTSE 100 were M&G, up 12.30 pence at 236.70p, GSK, up 51.00p at 1,507.00p, BT Group, up 5.50p at 179.45p, AstraZeneca, up 322.00p at 10,720.00p, and Unite Group, up 21.50p at 861.00p.
The biggest fallers on the FTSE 100 were International Consolidated Airlines Group, down 6.70p at 326.10p, Spirax Group, down 100.00p at 5,715.00p, Compass Group, down 45.00p at 2,605.00p, Polar Capital, down 5.50p at 326.50p, and Rio Tinto, down 59.00p at 4,402.00p.
Brent oil was lower at USD62.53 a barrel at the time of the London equities close on Friday, compared to USD63.41 a day prior. Gold fell to USD3,286.33 an ounce against USD3,316.41.
Monday's UK corporate calendar has full-year results from Sirius Real Estate.
The economic calendar has a slew of manufacturing purchasing managers' index readings, including Japan overnight, the eurozone at 0900 BST, the UK at 0930 BST and US readings at 1445 and 1500 BST.
By Eric Cunha, Alliance News news editor
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