6th Aug 2025 09:05
(Alliance News) - European blue-chips opened in the green on Wednesday, after US stocks retreated on Tuesday ahead of US President Donald Trump's tariffs becoming effective on Thursday.
The FTSE 100 index opened up 25.24 points, 0.3%, at 9,167.97. The FTSE 250 was up 57.63 points, 0.3%, at 21,959.32, and the AIM All-Share was up 1.61 points, 0.2%, at 765.09.
The Cboe UK 100 was up 0.4% at 917.34, the Cboe UK 250 was up 0.3% at 19,324.69, and the Cboe Small Companies was down 0.4% at 17,261.80.
In European equities on Wednesday, both the CAC 40 in Paris and the DAX 40 in Frankfurt were up 0.6%.
The pound was quoted down at USD1.3296 early on Wednesday in London, compared to USD1.3301 at the equities close on Tuesday. The euro stood broadly flat at USD1.1577, against USD1.1579. Against the yen, the dollar was trading up at JPY147.62 compared to JPY147.42.
Hiscox led the FTSE 100 index at London's market open, up 7.6%.
The Bermuda-based specialist insurer posted pretax profit of USD276.6 million for the six months to June 30, falling 2.4% from USD283.5 million the year before on increased expenses. Insurance revenue rose 2.4% to USD2.11 billion from USD2.06 billion, while the firm's investment result improved 54% to USD234.9 million from USD152.4 million.
Hiscox declared an interim dividend of 14.4 US cents per share, up 9.1% on-year from 13.2 cents.
The company reaffirmed its full-year guidance of more than 6% growth at constant currency in its Retail division, and said it expects "positive momentum" to build for the group in the second half. Hiscox also increased the maximum consideration for its buyback programme to USD137.5 million, from the prior USD87.5 million limit.
Faron Pharmaceuticals rose 12%.
The Turku, Finland-based developer of cancer immunotherapies reported an increase in the complete remission rate in patients with frontline or treatment-naive high-risk myelodysplastic syndrome, in data from its phase 1/2 Bexmab trial.
"The continued maturation of the Bexmab data demonstrates bexmarilimab's profound impact as a disease-modifying agent," said Dr Petri Bono, Chief Medical Officer of Faron. "Seeing the CR rate strengthen over time to 43%, which complements the robust 50% [composite] CR we have already reported, is very encouraging.
"It provides us with two compelling and clinically meaningful data sets for discussion with the [US Food & Drug Administration] and gives us confidence in proposing a randomized registrational trial designed for accelerated approval with either CR or cCR as the primary endpoint."
At the other end, ImmuPharma lost 21%.
The London-based specialist drug discovery and development company said its pretax loss widened to GBP1.9 million in the six months that ended June 30, from a GBP594,767 million loss a year prior. This was primarily due to research and development expenses rising 46% to GBP690,021 from GBP473,521, and administrative expenses nearly doubling to GBP490,676 from GBP258,023.
"At an operational level, we have maintained a strong focus on rigorous cost control measures and strategic outsourcing to minimise fixed overheads, while advancing our research and development efforts," said Chief Executive Officer & Chair Tim McCarthy. "These initiatives are aligned with our preparation for upcoming patent filings this year.s. Furthermore, we strengthened the balance sheet and extended our cash runway through the successful completion of an oversubscribed placing in February 2025."
In Asia on Wednesday, the Nikkei 225 index in Tokyo advanced 0.6%. In China, the Shanghai Composite rose 0.5%, while the Hang Seng index in Hong Kong improved 0.2%. The S&P/ASX 200 in Sydney closed up 0.8%.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average fading 0.1%, the S&P 500 losing 0.5% and the Nasdaq Composite shedding 0.7%.
The yield on the US 10-year Treasury was quoted at 4.23%, widening from 4.20%. The yield on the US 30-year Treasury was quoted at 4.81%, stretching from 4.77%.
"The S&P 500 recorded a notable pullback of 0.49% in the most recent trading session – a cautious response from investors amid mounting uncertainties clouding both the U.S. economy and the broader global landscape. Market sentiment is currently being shaped by three core factors: weakening domestic economic data, diverging corporate earnings results, and escalating geopolitical and trade-related risks," commented XS.com analyst Linh Tran.
Tran continued: "On the geopolitical front, global markets are entering a phase of heightened instability, with prolonged conflicts in Gaza and Ukraine, and more recently, strong rhetoric from U.S. President Donald Trump. Trump has warned of imposing secondary tariffs ranging from 100% to 500% on countries continuing to import Russian oil, and has also threatened steep tariffs on goods from India – two actions that risk triggering a new wave of global protectionism.
"Notably, Trump has set a deadline of August 8 for Russia to reach a peace agreement. Should this deadline pass without resolution, additional sanctions may be imposed, potentially disrupting global supply chains and undermining investor confidence in developed markets.
"Although the market remains somewhat supported by solid Q2 earnings, the combination of uneven corporate growth, weakening economic indicators, and escalating geopolitical-trade tensions is placing the S&P 500 at a critical crossroads.
"In the short term, the potential for a Fed policy pivot will continue to shape market expectations. However, if prevailing uncertainties continue to intensify, the correction in the S&P 500 may not yet be over – particularly given that stock valuations, especially within the tech sector, remain elevated relative to historical averages."
Brent oil was quoted up at USD68.16 a barrel early in London on Wednesday from USD68.04 late Tuesday. Gold was quoted lower at USD3,374.65 an ounce against USD3,385.82.
Still to come on Wednesday's economic calendar, eurozone retail sales construction PMI readings in the UK and across Europe.
By Emily Parsons, Alliance News reporter
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