1st Aug 2025 12:12
(Alliance News) - Stock prices in London were down at midday on Friday as a risk-off mood prevailed after US President Donald Trump proceeded with new tariffs.
The FTSE 100 index was down 64.49 points, 0.7%, at 9,068.32. The FTSE 250 was down 263.55 points, 1.2%, at 21,699.28, and the AIM All-Share was down 5.32 points, 0.7%, at 756.18.
The Cboe UK 100 was 0.7% lower at 905.58, the Cboe UK 250 was down 1.2% at 19,051.72, and the Cboe Small Companies fell 0.2% to 17,360.99.
In European equities on Friday, the CAC 40 in Paris was down 2.3%, while the DAX 40 in Frankfurt fell 1.7%.
"Equity markets were flashing red as Trump's tariff regime hits another milestone," said Russ Mould, investment director at AJ Bell.
"Investors have been caught off guard, having previously hoped Trump would kick the new tariff levels down the road pending further negotiations with foreign trade partners. Instead, we've got new rates galore and that means investors need to spend time understanding what that means for companies in their portfolio."
US President Donald Trump ordered the reimposition of tariffs on dozens of trading partners.
However, in a minor reprieve that opens the door to further negotiations, the White House said these measures will take effect on August 7, not Friday as previously expected.
The tariff rates for 92 nations range from 10% to 41%. Mexico received a reprieve with a 90-day extension, while China faces a separate deadline of August 12.
Stocks in New York were called lower. The Dow Jones Industrial Average and S&P 500 index were called down 1.1% and the Nasdaq Composite 1.3% lower.
The yield on the 10-year US Treasury widened to 4.39% from 4.34%. The yield on the 30-year grew to 4.93% from 4.87%.
"The fact Trump hasn't chickened out and pushed back the 1 August deadline to 1 September has soured the tone on the markets," Mould added.
"We haven't had a repeat of the sharp market sell-off seen immediately after the 2 April Liberation Day speech. However, it's fair to say there is a broad negative tone at the end of the trading week and recent upwards market momentum has evaporated."
The pound was down at USD1.3165 at midday on Friday in London, compared to USD1.3230 at the equities close on Thursday. The euro stood at USD1.1410, lower against USD1.1442. Against the yen, the dollar was trading at JPY150.38, down compared to JPY150.48.
The UK manufacturing sector remained in downturn in July, survey results from S&P Global showed on Friday, though the contraction eased to its least negative in six months.
The manufacturing purchasing managers' index picked up to 48.0 points in July, from 47.7 in June, though it remained below the 50-point neutral mark. The reading came in below last week's flash estimate of 48.2 points.
The rate of contraction in output slowed to its weakest in the current period of decline, while business optimism rose to a five-month-high.
Eurozone consumer price inflation was hotter-than-expected in July, but remained within the European Central Bank's target, numbers on Friday showed.
According to a Eurostat estimate, the annual consumer price inflation rate was stable at 2.0% in July, the same as in June. It had been expected to cool to 1.9%, according to FXStreet cited consensus.
In London, Pearson gained 5.4% and was the best performer on a subdued day on the FTSE 100.
The publisher of digital and virtual learning materials raised its dividend and said it is on track to deliver guidance, expressing confidence of stronger growth in the second half of the year.
Pretax profit increased 2.8% to GBP218 million in the first half of 2025 from GBP212 million a year prior, while basic earnings per share were up 7.4% to 24.8 pence from 23.1p.
Profit growth was driven by operating leverage on sales growth, gains on disposals and the reversal of impairments on property assets, partially offset by inflation and currency headwinds.
Sales were down 1.7% to GBP1.72 billion from GBP1.75 billion a year ago, but rose 2% on an underlying basis with each business unit "performing broadly in line with our expectations."
Melrose Industries was up 5.0%.
The aerospace engineering company said all of its end markets were growing structurally amid rapidly increasing demand in the defence sector, as it increased its dividend amid a swing to profit.
The Birmingham, England-based aerospace engineering company reported pretax profit of GBP379 million in the first half of 2025, swung from a loss of GBP105 million. Adjusted pretax profit climbed 22% to GBP248 million from GBP204 million.
Revenue fell 1.3% to GBP1.72 billion from GBP1.74 billion, but cost of sales decreased 5.4% to GBP1.27 billion from GBP1.34 billion, and operating expenses were cut to just GBP13 million from GBP466 million.
The company declared an interim dividend of 2.4 pence per share, up 20% from 2.0p a year ago and kept its full year guidance on a constant currency basis unchanged.
Intertek was the worst performer on the blue-chip index and sank 7.8%.
The provider of assurance, testing, inspection and certification services upped its dividend and backed expectations of growth in the medium term, although first-half revenue was broadly flat on-year.
Pretax profit was up 9.8% in the six months that ended June 30, rising to GBP226.5 million from GBP206.2 million the year prior.
An increase of 0.2% kept revenue broadly stable on-year at GBP1.67 billion, although Intertek said the increase was 4.5% at constant exchange rates.
On the FTSE 250 index, Playtech rose 2.4%.
The gambling software operator reported "strong performance" in the second quarter, with contributions from associate firms ahead of expectations.
Alongside an improvement in business-to-business trading, Playtech noted a better-than-expected income contribution from associates. Specifically, Caliente Interactive benefitted from "favourable" sporting results in the second quarter, paying its first dividend under a revised deal with Playtech.
It expects adjusted earnings before interest, tax, depreciation and amortisation to be at least EUR90 million for the six months to June 30. In the first half of 2024, adjusted Ebitda came to GBP243.0 million.
In other stocks, Predator Oil & Gas fell 31%.
The Morocco and Trinidad-focused oil and gas company said it has successfully perforated the 'A' sand section at the MOU-3 well at Guercif, Morocco.
The firm said the perforations may extend close to, but not beyond, the maximum limit of probable formation damage caused during drilling. The well is currently filled with nitrogen and shut in to allow any potential slow pressure build-up and clean-up close to the possible limits of the formation damage.
"Whilst the perforating has been successful, thus far it has not been able to completely overcome the formation damage to allow the well to flow. Pressure build up in the well is being monitored to see if with time the damage can be overcome," said Chief Executive Officer Paul Griffiths. "We will seek to execute the MOU-6 drilling programme at the earliest opportunity this year in order to maintain momentum."
Gold was quoted at USD3,300.60 an ounce at midday on Friday, higher than USD3,292.45 on Thursday. Brent oil fell to USD71.02 a barrel from USD71.11.
Still to come on Friday's economic calendar are manufacturing PMI and nonfarm payrolls figures in the US.
By Michael Hennessey, Alliance News reporter
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