23rd Apr 2025 11:51
(Alliance News) - London's FTSE 100 remained firmly in the green at midday on Wednesday alongside its European peers, as gold continues its retreat and investor sentiment turns hopeful amid signs of a potential reduction in trade tensions between the US and China.
The FTSE 100 index was up 106.40 points, 1.3%, at 8,435.00. The FTSE 250 was up 228.10 points, 1.2%, at 19,466.34, and the AIM All-Share was up 2.93 points, 0.4%, at 674.72.
The Cboe UK 100 was up 1.3% at 839.05, the Cboe UK 250 was up 1.0% at 16,993.38, and the Cboe Small Companies was up 0.5% at 15,405.34.
In European equities on Wednesday, the CAC 40 in Paris improved 2.2%, while the DAX 40 in Frankfurt edged up 2.6%.
"European markets including the UK enjoyed a solid bounce following yesterday's strong rally on Wall Street," commented AJ Bell analyst Russ Mould. "There are several reasons why markets have moved higher. Yesterday, Treasury Secretary Scott Bessent said the trade war between the US and China was unsustainable, with Donald Trump suggesting a deal would be reached between the two countries.
"Trump also said he doesn't intend to fire US Federal Reserve chair Jay Powell which has calmed nerves. Previous speculation that Powell might be given the boot caused markets to wobble in the US at the start of the week. These comments have given markets a sense of optimism that recent chaos might have peaked and we're heading towards calmer waters."
China said Wednesday that it was willing to engage in trade talks with Washington, a day after US President Donald Trump signalled that hefty tariffs he imposed on the country would come down after the sides reach a deal.
Trump acknowledged Tuesday that the level of US tariffs on China was currently "very high", saying that they would "come down substantially" after a deal is struck.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 1.6%, the S&P 500 index 2.0% higher, and the Nasdaq Composite up 2.4%.
US Vice President JD Vance warned Wednesday that Moscow and Kyiv must strike a deal or Washington will end its efforts to reach a ceasefire.
"We've issued a very explicit proposal to both the Russians and the Ukrainians, and it's time for them to either say yes, or for the US to walk away from this process," Vance told reporters in India.
Vance spoke as envoys from Washington, Kyiv and European nations gathered for talks in Britain amid a new US push to end Russia's war in Ukraine.
Ukraine could be forced to swallow a bitter pill under terms being ironed out between the US and Russia, according to the Financial Times. Russian leader Vladimir Putin has offered to halt his invasion of Ukraine across its current front lines, the newspaper reported.
Among the ideas floated by the US for the settlement are Moscow's continued control of occupied Ukrainian regions, and US recognition that Russia owns the Crimean peninsula, the FT said. Ukrainian President Volodymyr Zelensky is unlikely to accept the surrender of Crimea and called for an unconditional ceasefire as the first step to negotiations to end the war.
The pound was quoted lower at USD1.3299 at midday on Wednesday in London, compared to USD1.3383 at the equities close on Tuesday. The euro also stood lower at USD1.1398, against USD1.1479.
Against the yen, the dollar was trading up at JPY141.97 compared to JPY140.73.
The UK's service sector declined in April amid "aggressive" continuous job cutting and business optimism at a two-and-a-half-year low, data published by S&P Global showed Wednesday.
The flash UK purchasing managers' composite output index fell to 48.2 points in April from 51.5 in March. Falling below the neutral 50-point mark separating growth from contraction, it indicates a decline in April. It was far below the FXStreet-cited consensus, which had pencilled in a milder slowdown to 50.4 points.
The flash UK services PMI business activity index deteriorated to 48.9 points in April from 52.5 in March. It was an unexpected decline in April, as the FXStreet-cited consensus had anticipated the index to remain above growth territory, at 51.3 points.
Meanwhile, Germany's private sector economy slipped back into contraction in April, as concerns over tariffs on trade and economic uncertainty weighed on business sentiment and demand, the purchasing managers' index survey results from S&P Global showed, also on Wednesday.
The Hamburg Commercial Bank flash Germany composite PMI output index fell to 49.7 points in April from 51.3 in March, falling below the 50-point threshold between expansion and contraction for the first time in four months. It marked a four-month low for the index, which is compiled from survey responses covering both manufacturing and services.
Still to come on Wednesday's economic calendar, the US flash composite PMI at 1445 BST.
Reckitt Benckiser led the FTSE 100 laggers, down 6.4%.
The Slough, England-based consumer products company said like-for-like sales rose 1.1% in the first quarter that ended March 31, below company-compiled consensus for growth of 1.4%. Net revenue fell 1.6% to GBP3.68 billion in the first quarter from GBP3.74 billion a year before.
Nevertheless, Chief Executive Officer Kris Licht said it was a "solid" first quarter, driven by 'Core Reckitt' with continued strong growth in Emerging Markets. "We maintain our outlook for full year 2025 whilst recognising the more challenging macroeconomic outlook."
Hochschild Mining tumbled 10%.
The London-based gold and silver miner in Argentina, Brazil and Peru produced 79,941 gold equivalent ounces in the three months ended March 31, including 58,021 ounces of gold. It also produced 1.8 million ounces of silver.
Output was supported by a "solid performance" at Inmaculada in Peru and steady operations at San Jose in Argentina, but the Mara Rosa mine in Brazil was hit by heavier-than-usual rains and labour challenges, Hochschild said. Production there totalled 16,059 ounces of gold.
Despite the weaker showing at Mara Rosa, the company reiterated its 2025 guidance for 350,000 to 378,000 gold equivalent ounces at all-in sustaining costs of between USD1,587 and USD1,687 per ounce.
At the other end, Premier African Minerals gained 75%.
The developer of RHA tungsten and Zulu lithium projects in Zimbabwe has entered into a letter of intent with Glencore International regarding its potential purchase of spodumene concentrate, and the repayment or management of the amount owed for the Zulu lithium and tantalum project.
"Premier appreciate enormously the commitment and persistence from all to get us to this point. Our focus is now firmly set on the final completion and optimisation of the spodumene float section," said Chief Executive Officer George Roach.
Brent oil was quoted higher at USD68.27 a barrel at midday in London on Wednesday from USD67.62 late Tuesday.
Gold was quoted lower at USD3,327.95 an ounce against USD3,425.98, continuing its retreat from a record high of USD3,500.12 early Tuesday.
By Emily Parsons, Alliance News reporter
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