10th Apr 2025 11:51
(Alliance News) - Stock prices in London were higher at midday on Thursday, as markets continue to focus on the relief of US President Donald Trump's 90-day pause on new tariffs.
China has urged the US to meet it "halfway" after Trump said he was raising tariffs on China to 125% from an earlier 104%. These took effect at the same time as retaliatory levies of 84% slapped on by Beijing on US imports.
China's commerce ministry warned the tariffs risked "severely" impacting the global economy, but stressed that "the door to dialogue is open".
The FTSE 100 index was up 345.95 points, 4.5%, at 8,025.43. The FTSE 250 was up 859.52 points, 4.8%, at 18,750.16, and the AIM All-Share was up 24.91 points, 4.0%, at 651.92.
The Cboe UK 100 was up 4.6% at 799.87, the Cboe UK 250 was up 5.1% at 16,296.28, and the Cboe Small Companies was up 1.1% at 14,503.69.
"If you felt a bit of a breeze around 6:30pm UK time last night it was probably the cumulative effect of countless global investors breathing a massive sigh of relief," said AJ Bell's Russ Mould. "News that the particularly punishing 'reciprocal' tariffs introduced by the Trump administration would be put on hold saw substantial gains in the US and across Asia and that pattern is being repeated in Europe this morning."
He added that the "escalation" with China was the "one laggard", although: "A fortnight ago, the prospect of the world's two largest economies engaging in an all-out trade war would have been cause for significant alarm, but relative to the situation before...Trump hit the pause button on wider tariffs the market's cheer is understandable."
Among large-caps, Tesco fell 5.6%.
The Welwyn Garden City-based grocer expects adjusted operating profit of between GBP2.7 billion and GBP3.0 billion in the current financial year, down from GBP3.13 billion in the year just ended.
However, it reported strong annual results, with group adjusted operating profit climbing 11% to GBP3.13 billion. Of this, retail adjusted operating profit rose 7.7% to GBP2.97 billion, ahead of the company-compiled consensus of GBP2.9 billion.
Pretax profit fell 3.2% to GBP2.22 billion, and group like-for-like sales increased 3.1%.
The annual dividend was increased by 13% to 13.70p from 12.10p, and Tesco announced plans to buy back up to GBP1.45 billion worth of shares by April next year.
"For Tesco shares to be firmly down on such an 'up' day for the wider market demonstrates the level of investor disquiet," Mould commented. "It also reflects the fact that its shares held up better during the trade war ructions and is therefore not seeing the same bounce back as the biggest victims of broader market volatility."
Great Portland Estates rose 9.2% on the FTSE 250.
The London-based property developer and investor signed 32 new leases and renewals in its fourth quarter, generating annual rent of GBP18.2 million, up sharply from 14 new leases for GBP5.7 million a year prior.
In all of financial 2025, it signed 74 new leases and renewals, generating annual rent of GBP37.7 million, up from 66 new leases and renewals that generated annual rent of GBP22.5 million in financial 2024.
In small caps, TT Electronics lost 7.6%.
The Woking, England-based engineered electronics provider reported a widened pretax loss of GBP33.4 million for 2024 while revenue fell 15% to GBP521.1 million, with growth seen in Europe being offset by the North America region.
TT decided to pause its dividend due to macroeconomic uncertainty caused by the Trump tariffs and, as such, did not recommend a final dividend for 2024. Its total dividend for 2024, therefore, matched its interim dividend at 2.25p, down 67% on the previous year's 6.8p.
Looking ahead, TT said it expects adjusted operating profit of between GBP32 million and GBP40 million for 2025, compared to GBP37.1 million in 2024. It added that it does not expect to achieve a 12% operating margin in 2026.
In European equities on Thursday, the CAC 40 in Paris was up 5.3%, while the DAX 40 in Frankfurt was up 5.8%.
Negotiation between the EU and the US is "likely", Ireland's deputy premier has said.
Simon Harris met with US Commerce Secretary Howard Lutnick, a key critic of Irish policies within the Trump administration, in Washington DC on Wednesday.
"It has been my consistent position and the consistent position of the Irish government and the EU that we need to get into substantive, calm, measured dialogue with the US," Harris stated. "It has always been our preference that would have happened before tariff announcements...However, after my discussions yesterday, it is now clear to me that such engagement and negotiation is likely."
The pound was quoted higher at USD1.2908 at midday on Thursday in London, compared to USD1.2786 at the equities close on Wednesday. The euro stood at USD1.1062, flat against USD1.1060. Against the yen, the dollar was trading higher at JPY145.78 compared to JPY144.86.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 1.2%, the S&P 500 index down 1.5%, and the Nasdaq Composite down 1.7%.
Brent oil was quoted higher at USD64.00 a barrel at midday in London on Thursday from USD60.41 late Wednesday.
"Crude oil futures remain volatile, despite a strong rebound...While the market found support on Wednesday, the optimism surrounding the tariff pause may be short-lived, as demand-side risks persist, particularly regarding China’s economic outlook," commented Exness' Wael Makarem. "Moreover, mixed supply signals have further complicated the market.
"These include the potential for increased output from Opec and disruptions in oil infrastructure, such as the temporary shutdown of the Keystone Pipeline following a spill. Mixed data about US crude inventories could also contribute to the uncertainty."
Gold was quoted higher at USD3,117.51 an ounce against USD3,085.53 late Wednesday.
Still to come on Thursday's economic calendar are the US consumer inflation and jobless releases.
By Emma Curzon, Alliance News reporter
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