8th Jul 2025 08:49
(Alliance News) - European equities opened mixed on Tuesday, failing to replicate the more confident trade seen in Asia, where investors took a more optimistic view of the tariff situation.
The FTSE 100 index edged up just 3.54 points to 8,810.07. The FTSE 250 was up just 4.09 points at 21,542.57, and the AIM All-Share was up 2.89 points, 0,4%, at 774.85.
The Cboe UK 100 was up slightly at 878.24, the Cboe UK 250 was up 0.1% at 19,050.69, and the Cboe Small Companies also added 0.1% to 17,517.41.
In European equities on Tuesday, the CAC 40 in Paris fell 0.2%, while the DAX 40 in Frankfurt rose slightly.
US President Donald Trump said on Monday he may delay planned tariffs on several countries beyond the newly set deadline of August 1.
Asked whether the new date was firm, Trump told reporters: "I would say firm, but not 100%."
"If they call up and they say we'd like to do something a different way, we're going to be open to that," he added.
Trump said letters sent to over a dozen countries - including Japan, South Korea and South Africa - outlining planned tariffs were "final," but added: "If they call with a different offer, and I like it, then we'll do it."
On Monday, Trump moved the imposition of high tariffs on trading partners from July 9 to August 1.
In Tokyo on Tuesday, the Nikkei 225 ended 0.3% higher. In China, Shanghai Composite rose 0.7% while the Hang Seng Index in Hong Kong was 1.0% higher. The S&P/ASX 200 in Sydney edged up slightly.
"The market seems to be taking the view that nothing is final and that these letters merely mark another iteration on the journey towards a trade deal. Taking Japan for example. Prime Minister Ishiba is fighting a crucial Upper House election on 20 July and does not want to be seen to be rolling over and accepting more US rice imports. That position could potentially change after the election," analysts at ING commented.
"Reports suggest that the EU might be able to secure a decent trade deal with the US after all. The EU's negotiating leverage of a community of 450 million consumers is leading to reports that the baseline 10% US tariff on EU imports can be maintained, while there might be some better carve-outs for the aircraft or drinks industries. Obviously, there are still big challenges with auto tariffs at 25%, and one of the biggest shoes to drop is what happens in the pharma sector. Let's see."
The European Commission said EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday.
The pound traded at USD1.3642 on Tuesday morning, flat from USD1.3641 at the time of the London equities close on Monday. The euro rose to USD1.1756 from USD1.1735. Against the yen, the dollar rose to JPY146.08 from JPY145.86.
The yield on the US 10-year Treasury was quoted at 4.40% early Tuesday UK time, widening slightly from 4.39%, where it stood at the time of the London equities close on Monday. The yield on the US 30-year Treasury was quoted at 4.94%, stretching from 4.92%.
In New York on Monday, the Dow Jones Industrial Average ended down 0.9%, the S&P 500 lost 0.8% and the Nasdaq Composite shed 0.9%.
Hargreaves Lansdown analyst Matt Britzman commented: "Wall Street was the first to react last night, with major indexes sliding over 1% as the tariff news hit the reels. After recent all-time highs for the S&P 500 and Nasdaq, the new 1 August tariff deadline and fears of skipped negotiations have markets on edge, especially with the US-China trade deal still hanging in the balance.
"There's clearly a desire from the White House to get deals done, reflected in the latest extension of the tariff deadline. Investors are still digesting the latest developments, with US futures suggesting a claw back of some of yesterday's losses when markets open this afternoon. The lack of any real impact from tariffs on inflation, for now at least, has likely kept a lid on the fallout. Still, the clock is ticking, and the White House can only extend deadlines for so long before being forced to swap the carrot for the stick, setting up a volatile few weeks ahead."
In London, Glencore added 1.4%, among the best FTSE 100 performers. JPMorgan reinitiated the stock at 'overweight'.
Gambling firms also climbed. Paddy Power owner Flutter added 0.2%, as Jefferies reinitiated the stock with a 'buy' rating. Ladbrokes Coral owner Entain climbed 2.2% after Bank of America lifted it to 'buy' from 'neutral'.
Elsewhere, Victrex fell 7.7%. The polymer solutions provider said revenue in the third quarter ended June 30 fell 3% on-year to GBP71.5 million. Sales volumes rose 8%, but the average selling price per kilogramme slumped 11%.
The company is still targeting for underlying pretax profit in the second half of its financial year to be "slightly improved" on the GBP23.2 million achieved in the first, but cautioned that a continuation of third quarter trends would lead to its bottom line being at a "broadly similar level".
Victrex announced that CEO Jakob Sigurdsson plans to step down from the CEO role after eight years. The company announced it has poached the CEO of AB Dynamics to become its next boss.
James Routh has "more than 30 years' experience across international companies serving end-markets aligned to Victrex, including transportation, aerospace and defence", Victrex said.
AB Dynamics, a supplier of advanced testing, simulation and measurement products, said Routh has a 12-month notice period. He is expected to continue in the CEO role until the company completes a selection process.
AB Dynamics shares fell 3.0%.
The Reserve Bank of Australia left interest rates unmoved on Tuesday, defying expectations of a cut.
The RBA maintained the cash rate at 3.85%, though a cut to 3.60% was expected, according to consensus cited by FXStreet.
The RBA said: "The board continues to judge that the risks to inflation have become more balanced and the labour market remains strong. Nevertheless it remains cautious about the outlook, particularly given the heightened level of uncertainty about both aggregate demand and supply.
"The board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5% on a sustainable basis. It noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia."
A barrel of Brent rose to USD69.21 early Tuesday, from USD68.84 late Monday afternoon. Gold traded at USD3,332.21 an ounce, up from USD3,320.60.
By Eric Cunha, Alliance News news editor
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