7th Apr 2025 09:04
(Alliance News) - Stock prices in London opened in the red on Monday, as EU ministers prepare to discuss strategies to either reciprocate US tariffs or convince Trump to back down
The FTSE 100 index opened down 366.95 points, 4.6%, at 7,688.03. The FTSE 250 was down 873.14 points, 4.8%, at 17,492.21, and the AIM All-Share was down 25.98 points, 4.1%, at 614.56.
The Cboe UK 100 was down 4.9% at 763.80, the Cboe UK 250 was down 4.9% at 15,261.05, and the Cboe Small Companies was down 0.6% at 14,510.65.
Berkeley Group was the best-performing large cap but still lost 1.7%. Melrose was the biggest loser, down 9.3%.
LondonMetric lost 2.3% despite reporting asset sales worth USD40.4 million.
The REIT said the sales, of three London warehouses and two in Birmingham and Aberdeen, are in line with book values at September 30 and have delivered a profit on cost of 30% and an ungeared internal rate of return of 10%.
Shell fell 7.5%.
The London-based oil major expects lower natural gas production and liquefied natural gas volumes in the first quarter of 2025 than previously forecast, reflecting unplanned maintenance in Australia and adverse weather.
In a trading update, Shell said it expects integrated gas production of 910,000 to 950,000 barrels of oil equivalent. That compared with a range of 930,000 to 990,000 in the last quarterly report.
In addition, Shell said LNG production reached between 6.4 million and 6.8 million metric tonnes in the first three months of this year, down from a previous forecast of 6.6 million to 7.2 million tonnes.
Shell is the world's largest LNG trader and recently said it would look to boost sales of the product by 4% to 5% a year between now and 2030.
Integrated gas production was "impacted by unplanned maintenance, including in Australia", with LNG volumes reflecting "weather impact (cyclones) and unplanned maintenance in Australia".
On the FTSE 250, Ruffer Investment led with a 0.6% rise while at the other end Senior lost 11%.
Ferrexpo lost 8.9%.
The Baar, Switzerland-based miner reported a production increase, with total commercial production reaching 2.13 million tonnes for the first quarter of 2025, but said this would not improve earnings due to high input costs.
On AIM, Catenai surged 21%.
The London-based digital media and technology company said it expects to receive a GBP567,500 repayment from its convertible loan note investment in Klarian Ltd.
In European equities on Monday, the CAC 40 in Paris was down 6.1%, while the DAX 40 in Frankfurt was down 7.3%.
EU trade ministers are meeting in Luxembourg on Monday to sound out a strategy to convince Trump to backtrack on new tariffs imposed on the bloc. Imports from EU countries to the US face new tariffs of 20% starting on Wednesday.
EU ministers are also expected to discuss reciprocal tariffs as well as other retaliatory measures which would be implemented in case efforts to negotiate a solution with Washington fail.
Ministers will also discuss trade relations with China, with EU Trade Commissioner Maros Sefcovic due to brief them on his recent talks in Beijing.
The pound was quoted at USD1.2903 early on Monday in London, down compared to USD1.2931 at the equities close on Friday. The euro stood at USD1.1011, up against USD1.0994. Against the yen, the dollar was trading lower at JPY145.53 compared to JPY145.80.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 7.8%. In China, the Shanghai Composite was down 7.3%, while the Hang Seng index in Hong Kong fell 13%. The S&P/ASX 200 in Sydney closed down 4.2%.
A top Chinese official has vowed to protect US firms and pledged his country will remain a "promising land" for foreign investment, Beijing said Monday after it slapped 34% tariffs on US imports.
Beijing's tariffs "firmly protect the legitimate rights and interests of enterprises, including American companies", vice commerce minister Ling Ji told a panel of representatives of US companies on Sunday, his ministry said.
Those levies – which come into effect on Thursday – "are aimed at bringing the US back onto the right track of the multilateral trade system", he told the representatives, including of electric vehicle firm Tesla Inc, GE Healthcare Technologies Inc and Medtronic PLC.
"The root cause of the tariff issue lies in the US," Ling said.
He urged the firms to "take pragmatic actions to jointly maintain the stability of global supply chains and promote mutual cooperation and win-win outcomes".
China said the US was aiming for "hegemony in the name of reciprocity" through its massive tariffs programme announced by President Donald Trump.
Foreign ministry spokesman Lin Jian said: "The US is seeking hegemony in the name of reciprocity, sacrificing the legitimate interests of all countries to serve its own selfish interests, and prioritising the US over international rules. This is typical unilateralism, protectionism and economic bullying."
China's major state-backed fund Central Huijin Investment on Monday vowed to help ensure "stable operations" of the market, as stocks across Asia were roiled by a trade war launched by Washington.
In a statement, the firm said it "has once again increased its holdings of exchange-traded funds and will continue to increase its holdings in the future to resolutely maintain the stable operation of the capital market".
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 5.5%, the S&P 500 down 6.0% and the Nasdaq Composite down 5.8%.
Brent oil was quoted lower at USD62.65 a barrel early in London on Monday from USD65.38 late Friday.
Gold was quoted lower at USD3,021.53 an ounce against USD3,025.91.
Still to come on Monday's economic calendar, the eurozone has retail sales data.
By Emma Curzon, Alliance News reporter
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