17th Feb 2025 09:00
(Alliance News) - Blue-chip stocks in Europe opened largely higher at the start of the week, with tariff worries and geopolitical concerns in focus at the start of the week.
The FTSE 100 index rose 13.43 points, 0.2%, at 8,745.89. The FTSE 250 added 64.96 points, 0.3%, at 20,977.97, and the AIM All-Share rose 1.33 points, 0.2%, at 727.39.
The Cboe UK 100 was up 0.3% at 877.63, the Cboe UK 250 also added 0.3% to 18,333.89, and the Cboe Small Companies was up 0.1% at 16,239.27.
In Paris, the CAC 40 was slightly lower. Frankfurt's DAX 40 added 0.2%.
US President Donald Trump said Friday that he planned to unveil tariffs on imported cars around April 2, adding to a cascade of levies he has threatened since taking office.
Trump's statement did not specify whether the tariffs would apply to all auto imports.
Since his inauguration on January 20, Trump has taken aim at allies and adversaries alike with threats of fresh duties.
He has referred to tariffs as a way to raise revenue, remedy trade imbalances and pressure countries to act on US concerns.
Against the dollar, the pound faded to USD1.2589 on Monday, from USD1.2612 at the time of the London equities close on Friday. The euro fell to USD1.0473 from USD1.0505. Against the yen, the dollar declined to JPY151.90 from JPY152.06.
Commerzbank analyst Ulrich Leuchtmann commented: "New tariff announcements (this time on automobile imports, allegedly starting April 2) by the US government are no longer helping the dollar one iota.
"Either the market no longer believes the threats. This is understandable, because apart from the 10% additional tariffs on imports from China, the US government has so far talked a lot and loudly about tariffs, but has not introduced any. Talk about tariffs is not completely sound and smoke, but has negative effects. We have discussed this at this point. However, the longer the grandiose announcements are not followed by action, the more these effects diminish. And then there is no reason for the dollar to trade stronger."
The analyst continued: "Or the market continues to believe that tariffs will come, but no longer believes that these tariffs are a reason for USD strength. Or the behavior of the US government is creating so much USD weakness elsewhere that the effects of new tariff threats are being offset."
UK Prime Minister Keir Starmer said Sunday he was ready to send troops to Ukraine if it was needed to ensure the security of Britain and Europe.
The UK was playing a leading role in supporting Kyiv in the war against Russia which "also means being ready and willing to contribute to security guarantees to Ukraine by putting our own troops on the ground if necessary," Starmer wrote in the Daily Telegraph.
"I do not say that lightly," Starmer added, saying he felt "very deeply the responsibility that comes with potentially putting British servicemen and women in harm's way.
"But any role in helping to guarantee Ukraine's security is helping to guarantee the security of our continent, and the security of this country."
Starmer confirmed he would join a top-level meeting to be held in Paris on Monday to address growing concerns over US efforts to end the war in Ukraine.
He also said that he would be meeting US President Trump "in the coming days", adding the UK had "a unique role" to play in ensuring Europe and the US work closely together.
European defence stocks were on the up. BAE Systems and Rolls-Royce added 4.6% and 1.6% in London, while Leonardo rose 4.0% in Milan.
Ferrexpo rose 11%. The iron pellet producer, which operates in Ukraine, was upgraded to 'buy' from 'hold' by Peel Hunt.
Assura surged 18%. Kohlberg Kravis Robert has rejected four bid proposals for the company.
The New York-based private equity firm said it is now considering if there is any "merit" in engaging with the care property investor's board.
KKR said the latest proposal values Assura's fully diluted share capital at GBP1.56 billion, 48 pence per share, a 28% premium to its Friday closing price.
"This follows significant work over the last 6 months which resulted in three previous written proposals made to the board of Assura, each of which was rejected unanimously by the board," KKR said. The fourth offer was rejected on Saturday, KKR said.
Assura on Friday noted it had received an unsolicited approach from KKR and USS Investment Management, the latter acting as agent for and on behalf of Universities Superannuation Scheme. The Universities Superannuation Scheme is a pension scheme in the UK for universities and higher education institutions.
USS IM on Monday announced it does not plan to make an offer for Assura, be as part of a consortium or alone. KKR noted USS IM's announcement. KKR has until the close of play on March 14 to announce if it plans to make a formal offer for Assura.
Springfield Properties rose 9.0%. It announced the "profitable" sale of 2,480 plots of undeveloped land with planning consent across six sites for a sum of GBP64.2 million to housebuilder Barratt Redrow.
"Proceeds from the land sale will be received over four years and will be used to accelerate the removal of the group's outstanding bank debt and to capitalise on the significant growth opportunities emerging in the north of Scotland. In addition, the group and Barratt have entered into non-binding discussions regarding the possible sale of additional future land holdings on a number of other sites," Springfield, a housebuilder in Scotland, said.
A barrel of Brent oil rose to USD75.02 early Monday from USD74.75 at the time of the London equities close on Friday. Gold was quoted at USD2,896.12 an ounce, up from USD2,893.73.
Markets in New York will be closed for Washington's Birthday.
By Eric Cunha, Alliance News news editor
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