22nd Apr 2025 11:56
(Alliance News) - London stocks were mixed at midday on Tuesday, as the pound hit a seven-month high amid US dollar turmoil and UK firms halt plans for investment in anticipation of US tariff upheaval.
The FTSE 100 index was up 14.97 points, 0.2%, at 8,290.63. The FTSE 250 was down 26.91 points, 0.1%, at 19,223.10, and the AIM All-Share was up 2.85 points, 0.4%, at 671.79.
The Cboe UK 100 was down 0.1% at 823.46, the Cboe UK 250 was down 0.2% at 16,808.69, and the Cboe Small Companies was up 0.4% at 15,277.60.
Three quarters of UK manufacturing and logistics firms are bracing for a hit from US tariffs, with many putting the brakes on investment plans in a blow to the government's growth ambitions, new data reveals.
Larger businesses are more likely to be expecting a squeeze from new global trade policy, according to a survey carried out by HSBC UK.
US President Donald Trump unveiled a baseline 10% tariff for most countries, including the UK, earlier this month, while specific goods including cars, steel, and aluminium now face a 25% import tax.
HSBC's survey of 2,000 business leaders showed that 73% of UK manufacturers, and 75% of transportation and distribution firms said tariffs would have an impact on their business.
This rose to 22% and 26%, respectively, who warned they were expecting a "considerable" impact.
The euro stood higher at USD1.1497 at midday on Tuesday, against USD1.1374 at the London equities close on Thursday. Against the yen, the dollar was trading lower at JPY140.27 compared to JPY142.19.
The pound was quoted up at USD1.3373, compared to USD1.3259 late Thursday. The currency climbed to its highest level in 7 months at USD1.3421 on Monday, and reached a further high of USD1.3423 on Tuesday.
J Sainsbury led the FTSE 100 on Tuesday around midday, up 3.1%.
The supermarket chain has launched the share buyback programme announced with its annual results on Thursday last week. The buyback will be worth up to GBP200 million. It will be run by BNP Paribas and completed by the end of Sainsbury's financial first half on September 12.
Gelion climbed 7.0%.
The battery energy storage systems firm said it has now executed a materials testing deal with an unnamed tier-one battery manufacturer, following its agreement to the terms on Thursday last week.
Gelion will supply materials to the manufacturer for independent testing and validation of performance characteristics. The deal is a "significant progression in our commercial roadmap and reflects emerging industry recognition of our sulfur battery platform," said Gelion Chief Executive Officer John Wood.
Helium One Global faded 2.7%.
The Tanzania-focused helium exploration company said its construction permit for a helium and carbon dioxide processing plant has been approved by Las Animas County, representing a "milestone" for its Galactica-Pegasus helium development project, in which it has a 50% working interest.
Helium One Global also reported its Jackson-29 well at the Galactica project flowed "naturally" during drilling and at total depth. Its flow rate since total depth has increased to more than 320,000 cubic feet per day, with projected stabilised flow rates of 350 to 450 cubic feet per day.
In European equities on Tuesday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt also fell 0.3%.
"European markets started back after Easter in steady enough fashion despite a continuing flight from US assets," commented AJ Bell analyst Russ Mould.
"Persistent comments from President Donald Trump, which put the independence of the US Federal Reserve in question, resulted in weakness in the dollar, US Treasuries and Wall Street overnight. If the administration is able or willing to follow through on its threat to fire Fed chair Jerome Powell before his term is up next year, it could provoke an even stronger reaction amid fears about the implications for inflation.
"US currency and government debt are often a safe haven during times of market turbulence but, with America the source of much of the recent volatility, investors have been reaching for another obvious port in the storm, gold, in large numbers."
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.9%, the S&P 500 index up 1.0%, and the Nasdaq Composite also up 1.0%.
More than 100 US universities and colleges, including Ivy League institutions Princeton and Brown, issued a joint letter on Tuesday condemning President Donald Trump's "political interference" in the education system.
The move comes a day after Harvard University sued the Trump administration, which has threatened to cut funding and impose outside political supervision. Trump has sought to bring several prestigious universities to heel over claims they tolerated campus anti-Semitism, threatening their budgets, tax-exempt status and the enrolment of foreign students.
Gold was quoted up at USD3,455.63 an ounce against USD3,296.43 late Thursday. The yellow metal hit a high of USD3,500.12 earlier on Tuesday morning.
The US on Monday announced its intention to impose tariffs of up to 3,521% on solar panels from Southeast Asia, a move aimed at countering alleged Chinese subsidies and dumping in the sector.
The tariffs on companies from Cambodia, Thailand, Malaysia and Vietnam will still need to be ratified at a meeting of the International Trade Commission in June.
Meanwhile, Trump and his administration are studying whether dismissing independent Federal Reserve Chair Jerome Powell is an option, his top economic aide said on Friday.
Trump previously insisted that he could force out the Federal Reserve leader, lashing out after Powell warned of tariffs-fuelled inflation. In a scathing post on Truth Social, Trump repeated a demand for Powell to lower interest rates, saying his "termination...cannot come fast enough".
The US president does not have direct authority to fire Federal Reserve governors, but Trump could initiate a lengthy process to attempt to unseat Powell by proving there was "cause" to do so.
Brent oil was quoted down at USD67.15 a barrel at midday in London on Tuesday from USD67.52 late Thursday.
Still to come on Tuesday's economic calendar, the US Redbook index at 1355 BST and eurozone consumer confidence at 1500 BST.
By Emily Parsons, Alliance News reporter
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