30th Jun 2025 12:01
(Alliance News) - London stocks were mixed at midday on Monday, as US tariff uncertainty continues to weigh on investor sentiment despite a data reading confirming UK economic growth at the start of the year.
The FTSE 100 index was down 2.87 points at 8,796.04. The FTSE 250 was down 43.82 points, 0.2%, at 21,672.14, and the AIM All-Share was up 0.69 points, 0.1%, at 770.02.
The Cboe UK 100 was broadly flat at 876.47, the Cboe UK 250 was down 0.3% at 19,153.89, and the Cboe Small Companies was down 0.3% at 17,456.45.
In European equities on Monday, the CAC 40 in Paris was slightly lower, while the DAX 40 in Frankfurt fell 0.1%.
UK gross domestic product grew as expected during the first quarter of 2025, according to data from the Office for National Statistics on Monday.
Real GDP is estimated to have increased by 0.7% between January and March, in line with the ONS's first estimate. This is accelerated from a 0.1% growth in the prior quarter.
On-year, real GDP is estimated to have increased by an unrevised 1.3%, also in line with the first estimate.
"Confirmation that the UK economy delivered the fastest growth of any G7 country at the start of the year feels almost redundant," commented AJ Bell analyst Danni Hewson.
"A mix of tariff woes and tax hikes have created a period of such uncertainty and instability that many businesses have simply pressed pause on their future plans, and in some cases taken the decision to cut labour costs in order to set them up for what might be down the tracks.
"A deal between the UK and US is gradually working its way through the small print and the motor sector has been able to ramp up exports in the last few hours.
"But there are still questions about steel and aluminium exports, and about the potential impact on British manufacturing of Donald Trump’s trade talks with other countries which could include commitments to shift some production to the US.
"The early growth spurt looks set to be an anomaly rather than the sustained expansion the government needs if it's to pad treasury coffers without resorting to tax rises or further spending cuts."
Meanwhile, UK mortgage approvals were higher than expected in May, numbers from the Bank of England showed on Monday.
Net mortgage approvals for house purchases rose by 3.9% to 63,032 in May from 60,656 in April, data from the central bank showed. In April, the figure had fallen 5.3% from 64,057 in March.
The latest reading topped the FXStreet-cited consensus, which had anticipated a fall to 59,750.
The pound was quoted lower at USD1.3694 at midday on Monday in London, compared to USD1.3713 at the equities close on Friday.
The euro stood slightly higher at USD1.1718 from USD1.1717. Against the yen, the dollar was trading down at JPY144.20 compared to JPY144.75.
MediaZest was up 26% around midday.
The audio-visual technology company swung to pretax profit of GBP56,000 in the six months that ended March 31, from a GBP141,000 loss the year before, as revenue rose 58% to GBP1.9 million from GBP1.2 million.
"We are delighted with the progress seen in H1 FY25 and expect continued momentum through the remainder of the financial year and into FY26 and FY27," said Chief Executive Officer Geoff Robertson.
"The group continues to win new projects both with existing and new clients, driving recurring revenue streams and delivering organic growth. With our subsidiary in Europe going from strength to strength we are very optimistic about the future and prospects for significant further growth."
At the other end, CRISM Therapeutics sank 38%.
The British Virgin Islands-based pharmaceutical firm raised GBP800,000 before expenses through a placing of 6.7 million new shares at 12 pence each. Each placing share has an attaching grant of warrants on a one for two basis, exercisable at 24p per share and expiring 24 months after the admission of the placing shares to AIM.
CRISM also announced a retail offer to raise up to GBP100,000, at an issue price of 12p per share. Proceeds from both rounds of fundraising will be used to progress the development of its lead product, ChemoSeed.
Tiger Royalties & Investments faded 19%.
The London-based investor in "utility" meme coins and natural resources said the Tiger Alpha Subnet, which it acquired in mid-May, has seen "significant performance growth" and is now emitting more than 20.75 TAO a day. This represents more than USD7,055 in revenue per day and an annualised run rate of more than USD2.6 million.
"Importantly, Bittensor has recently closed registration for new subnets," added Tiger Royalties. "This change materially increases the scarcity and value of existing subnets like Tiger Alpha and Beta, placing the company in a strong strategic position within the decentralised AI ecosystem."
Tiger Royalties also on Monday launched its second subnet, Beta.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.5%, the S&P 500 index up 0.4%, and the Nasdaq Composite 0.7% higher.
The yield on the US 10-year Treasury was quoted at 4.25%, narrowing from 4.27%. The yield on the US 30-year Treasury was quoted at 4.81%, narrowing from 4.82%.
Canada said Sunday it will rescind taxes impacting US technology firms in hopes of reaching a trade agreement with Washington, after US President Donald Trump called off talks with Ottawa in retaliation for the levy.
Canadian Finance Minister Francois-Philippe Champagne "announced today that Canada would rescind the digital services tax in anticipation of a mutually beneficial comprehensive trade arrangement with the US," a government statement said.
It added that Trump and Canadian Prime Minister Mark Carney "have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025."
President Trump had said Friday that he is calling off trade negotiations with Canada in retaliation for taxes impacting major US tech firms, adding that Ottawa will learn of their tariff rate within a week.
Next week Wednesday is the deadline for nations to agree a trade deal with the US, or face higher tariffs.
Brent oil was quoted down at USD66.77 a barrel at midday in London on Monday from USD66.83 late Friday.
Gold was quoted higher at USD3,284.59 an ounce against USD3,273.76.
Still to come on Monday's economic calendar, the US Dallas Fed manufacturing index at 15:30 BST.
By Emily Parsons, Alliance News reporter
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