8th Apr 2025 11:57
(Alliance News) - Stock prices in London were higher at midday on Tuesday, amid hopes of negotiations to lessen the impact of US President Donald Trump's tariffs.
The EU plans tariffs of up to 25% on US goods in retaliation for levies on metals, but will spare bourbon to shield European wine and spirits from reprisals, according to a document seen by AFP on Tuesday.
The proposed tariffs – drawn up since President Donald Trump's duties on steel and aluminium took effect last month – aim to show EU strength while Brussels seeks to negotiate over Washington's broader tariffs onslaught.
Brussels scrapped bourbon from a preliminary list of targeted goods, after bowing to demands from major wine exporters France and Italy, which were spooked by Trump's threat to hit European alcoholic beverages with a 200% tariff in retaliation.
The US-produced whiskey does not feature on the final list seen by AFP, which was sent to representatives of EU member states ahead of a vote on Wednesday.
"After multiple punishing sessions, stock markets appear to have started their road to recovery," commented AJ Bell's Russ Mould. "It suggests investors are slowly regaining confidence, perhaps in the belief that an actual breakthrough on tariffs – either a temporary pause or positive negotiations – could unleash the mother of all rebound rallies.
"It's dangerous to think a massive rally will definitely happen, given how Trump is unpredictable, but the 'just imagine' thought will now be firmly engrained in investors' minds."
However, he warned: "Markets could stay fragile for days and weeks to come. It would only take a new sign of aggression from Trump or a trading partner fighting back hard to cause upset again."
The FTSE 100 index was up 134.59 points, 1.8%, at 7,836.67. The FTSE 250 was up 454.37 points, 2.6%, at 18,219.56, and the AIM All-Share was up 12.28 points, 2.0%, at 636.70.
The Cboe UK 100 was up 2.1% at 782.70, the Cboe UK 250 was up 2.3% at 15,818.73, and the Cboe Small Companies was up 0.5% at 14,591.41.
On the FTSE 100, Unite Group gained 2.4%.
The Bristol, England-based student accommodation manager said it is on track to deliver rental growth of 4% to 5% and occupancy of 97% to 98% for the current academic year after an acceleration in reservations in recent weeks.
It said the outlook for student numbers is "positive" for the 2025/26 academic year, with domestic demand underpinned by a 2% larger population of UK 18-year-olds.
On the FTSE 250, Hilton Food Group lost 0.2%.
The Huntingdon, Cambridgeshire-based "multi-protein" food producer said pretax profit for 2024 was GBP61.0 million, rising 26% from GBP48.6 million in 2023.
Revenue declined marginally to GBP3.99 billion and the company declared a final dividend of 24.9 pence per share, bringing its total dividend to 34.5p, up 7.8% on-year from 32.0p.
Looking ahead, Hilton Food said it is "confident" in delivering earnings growth during 2025, in line with a company-compiled market consensus for between GBP76.8 million and GBP83.3 million in adjusted pretax profit.
Over on AIM, Impax Asset Management dropped 15%.
The London-based investment manager, focused on sustainable ventures, said assets under management on March 31 was GBP25.3 billion, down 26% from GBP34.1 billion at December 31.
Also, analysts at Equity Development have reduced their 2025 year-end AuM forecast for Impax by around 20% to GBP25.0 billion.
Celsius Resources jumped 11%.
The developer of the Maalinao-Caigutan-Biyog copper-gold project said that the Philippine Department of Environment & Natural Resources confirmed that its local affiliate has satisfied the final financial compliance requirement under the project's mineral production sharing agreement.
"Now that we have fulfilled our compliance with the conditions of the mineral production sharing agreement, we are in a strong position to proceed with mine development and construction," Executive Chair Julito Sarmiento commented.
In UK news, energy and tech firms will meet UK government ministers on Tuesday for the first round of talks on how to power the UK's plans to expand its AI infrastructure.
In January, the UK prime minister laid out plans to make the UK a "global superpower" in AI. This included the creation of an AI Energy Council, which will meet for the first time on Tuesday and, chaired by the technology and energy secretaries, will also discuss plans to boost the UK's clean energy production.
In European equities on Tuesday, the CAC 40 in Paris was up 0.9%, while the DAX 40 in Frankfurt was up 1.0%.
EU chief Ursula von der Leyen warned against escalating a trade conflict sparked by sweeping US tariffs during a phone call with China's Premier Li Qiang on Tuesday, the European Commission said.
"The president called for a negotiated resolution to the current situation, emphasising the need to avoid further escalation," said a readout of the call, which came after Beijing vowed to "fight to the end" against fresh tariffs threatened by Trump.
The pound was quoted at USD1.2764 at midday on Tuesday in London, lower compared to USD1.2931 at the equities close on Monday. The euro stood at USD1.0937, lower against USD1.0994. Against the yen, the dollar was trading higher at JPY146.96 compared to JPY145.80.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 1.8%, the S&P 500 index up 1.3%, and the Nasdaq Composite up 1.0%.
Morgan Stanley thinks the Federal Reserve won't cut US interest rates until 2026, despite the investment bank slashing its forecasts for economic growth in 2025 and 2026.
Morgan Stanley on Tuesday lowered its 2025 growth forecast for the US to 0.8% from 1.5% previously and for 2026 to 0.7% from 1.2%. In March, it had cut its 2025 forecast from 1.9% and its 2026 forecast from 1.3%.
Brent oil was quoted at USD64.35 a barrel at midday in London on Tuesday, down from USD65.38 late Monday.
Gold was quoted lower at USD3,006.21 an ounce against USD3,025.91.
By Emma Curzon, Alliance News reporter
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