4th Apr 2025 12:01
(Alliance News) - European blue chips continued to shrink at midday on Friday, as China announced retaliatory 34% tariffs on US imports and filed a lawsuit with the World Trade Organisation.
The FTSE 100 index was down 286.32 points, 3.4%, at 8,186.72. The FTSE 250 was down 677.79 points, 3.5%, at 18,541.22, and the AIM All-Share was down 18.51 points, 2.8%, at 649.88.
The Cboe UK 100 was down 3.5% at 813.52, the Cboe UK 250 was 3.9% lower at 16,148.98, and the Cboe Small Companies was down 1.2% at 16,148.98.
Activity in the UK construction activity remained subdued, despite a slight pick up in March, while a lack of new projects and rising payrolls costs hit staffing levels, a report from S&P Global showed.
The seasonally adjusted S&P Global UK construction purchasing managers' index posted 46.4 in March, up from a 57-month low of 44.6 in February but still below the neutral 50.0 threshold.
It was below FXStreet consensus for a rebound to 46.7.
UK construction companies indicated a sustained downturn in business activity, alongside pressure on margins from sharply rising input costs, the report showed.
In European equities on Friday, the CAC 40 in Paris was down 3.0%, while the DAX 40 in Frankfurt was down 3.5%.
Markets extended a global selloff Friday as countries around the world reeled from US President Donald Trump's trade war, but the White House insisted the American economy will emerge victorious.
Trump slapped 10% import duties on all nations and far higher levies on imports from dozens of specific countries – including top trade partners China and the EU.
Separate tariffs of 25% on all foreign-made cars also went into effect, and Canada swiftly responded with a similar levy on US imports.
Stellantis NV – the owner of Jeep, Chrysler and Fiat – paused production at some Canadian and Mexican assembly plants.
In response to US tariffs, China on Friday said it has filed a lawsuit with the World Trade Organisation.
In addition, Beijing on Friday reported it would slap 34% tariffs on all imports of US goods from April 10. China also imposed exports controls on seven rare earth elements, its commerce ministry said, including gadolinium – commonly used in MRIs – and yttrium, which is used in consumer electronics.
Gold was quoted lower at USD3,107.88 an ounce against USD3,109.85. It hit a record high of USD3,167.69 late on Wednesday.
"Gold prices extended their correction after hitting another record high this week. The market could remain exposed to profit-taking after a sharp rally as investors weigh the impact of President Trump’s aggressive tariff plan unveiled earlier this week," said GivTrade's Hassan Fawaz.
"Still, gold remains supported by strong ETF inflows, central bank purchases, and expectations of interest rate cuts. On the geopolitical front, mixed developments could add to the complexity. An increase in tensions in the Middle East and Eastern Europe could support gold.
"Looking forward, investors turn their attention to today's US non-farm payrolls report, followed by Fed Chair Powell's speech. Expectations of looser monetary policy are likely to bolster the precious metal, while a cautious tone could fuel the correction."
The US non-farm payrolls reading is due at 1330 BST.
Alba Mineral Resources fell as low as 9.7% on Friday.
The Northern Europe-focused mineral explorer auctioned an exclusive 1 ounce gold coin on Thursday for a total of GBP20,000. The sale "represents not only the first gold sale from Alba's stewardship" of the Clogau-St David's gold mine in North Wales, but also "the enduring appeal and rarity of Welsh gold".
On the other end, Keras Resources was up 15%.
The mine developer focused on West Africa and the US has been awarded a mining and logistics contract for the Nayego manganese mine in northern Tongo. It also enters into a sale and purchase deal with Fujax Group for the first 400,000 tonnes of manganese ore produced at Nayega.
SDI Group climbed 1.0%.
The designer and manufacturer of scientific and technology products for digital imaging and sensing control applications has acquired Collins Walker, the maker of electric boilers, for a total of around GBP1.9 million.
"Collins Walker represents a strategic acquisition for SDI, aligning with our core investment criteria through its established position within a regulatory-driven, high-growth sector with international reach. Its lean, profitable operations offer a compelling opportunity for expansion, leveraging existing group manufacturing capacity to capitalise on the growing Net Zero and energy efficiency markets," said SDI Chief Executive Officer Stephen Brown.
The pound was quoted down at USD1.3025 at midday on Friday in London, compared to USD1.3114 at the equities close on Thursday. The euro stood lower at USD1.1037, against USD1.1047.
Against the yen, the dollar was trading lower at JPY145.42 compared to JPY146.11.
Stocks in New York were called lower. The Dow Jones Industrial Average was called 1.7% lower, the S&P 500 index down 1.5%, and the Nasdaq Composite 1.8% lower.
Taiwan has earmarked USD2.7 billion to help industries affected by US President Donald Trump's new tariffs, the government said Friday.
Taipei had sought to avoid Trump's threatened levies by pledging increased investment in the US and more purchases of US energy, but it was still hit by a 32% tax on its imports, excluding semiconductor chips.
The government has described the tariffs as "unreasonable" and "extreme", and plans to seek negotiations with Washington in the hope of reducing their impact.
Meanwhile, the EU announced a "new era" in ties with Central Asia on Friday at a major summit in Uzbekistan, as Brussels presses its influence in the region in the face of Russian and Chinese competition.
Russia's invasion of Ukraine has accelerated the region's drift from Moscow's orbit, with major powers to both the West and East sensing an opening.
"We are at another turning point. New global barriers arise, investments are being redirected, powers around the world are carving up new spheres of influence," EU chief Ursula von der Leyen told Central Asian leaders.
"Reliable partners have never been so important. We want to explore new avenues," she said, calling for a "strategic partnership" with the region.
Brent oil was quoted lower at USD65.50 a barrel at midday in London on Friday from USD69.80 late Thursday.
By Emily Parsons, Alliance News reporter
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