4th Apr 2025 09:11
(Alliance News) - London opened in the red on Friday, continuing its downturn alongside global peers as investors await retaliatory action to US tariffs from affected countries.
The FTSE 100 index opened down 85.45 points, 1.0%, at 8,389.29. The FTSE 250 was down 92.62 points, 0.5%, at 19,112.14, and the AIM All-Share was down 1.54 points, 0.2%, at 666.13.
The Cboe UK 100 was down 0.8% at 835.63, the Cboe UK 250 was 0.6% lower at 16,705.09, and the Cboe Small Companies was flat at 14,992.48.
The UK is braced for more market chaos on Friday as the government considers its response to US President Donald Trump's tariffs. Ministers have insisted they will respond with "cool and calm heads", but are keeping all options open, including the possibility of retaliatory tariffs on a range of American goods.
The UK Foreign secretary has said he regrets America's "return to protectionism" after Donald Trump insisted Prime Minister Keir Starmer was "very happy" with Britain's tariff treatment.
David Lammy said people across the country were "very concerned" about how the move to slap 10% import taxes on goods would hit their own finances, and added "all options" remain on the table to respond in the national interest.
Ministers have insisted they will remain "cool and calm" as they seek to secure an economic deal to mitigate the damage to Britain, but are not ruling out the possibility of retaliatory levies on a range of American products.
An "indicative list" published by the government showed products that could be targeted, including bourbon whiskey, motorcycles, guitars and jeans.
But an immediate response is unlikely as Trade Secretary Jonathan Reynolds told MPs he would hold a four-week consultation on retaliatory action. The government still hopes for an "economic deal" with the US to secure some exemption from the tariffs, with Prime Minister Keir Starmer promising businesses on Thursday that he would "fight for the best deal for Britain".
Trump on Thursday suggested he is open to negotiations.
"If somebody said that we're going to give you something that's so phenomenal, as long as they're giving us something that's good," Trump said when asked if he would consider deals with affected countries.
XS.com analyst Linh Tran commented: "Yesterday, global market sentiment turned cautious as tariff risks resurfaced under President Donald Trump’s administration. This move quickly reignited fears of a new trade war, putting downward pressure on risk assets such as equities and cryptocurrencies."
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 4.0%, the S&P 500 down 4.8% and the Nasdaq Composite 6.0% lower.
Still to come on Friday's economic calendar, UK construction PMI at 930 BST and US nonfarm payrolls at 1330 BST.
Tran continued: "Today, the market’s focus will turn to the US nonfarm payrolls and unemployment rate data. If the data show signs of labor market cooling, expectations for a Fed rate cut in June or July may strengthen—potentially supporting investor sentiment for BTC. On the other hand, stronger-than-expected data could reinforce the US dollar and add further downward pressure on Bitcoin and other risk assets."
In European equities on Friday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 0.6%.
The foreign ministers of France and Britain on Friday said Russia was still striking Ukraine's energy infrastructure and accused President Vladimir Putin of dragging its heels over US peace efforts.
At the same time, Paris said that the military chiefs from the two countries were visiting Kyiv to discuss a possible deployment of troops to secure any ceasefire.
In response, iron ore pellets producer Ferrexpo was down 3.7% at Friday's market open.
The pound was quoted lower at USD1.3023 early on Friday in London, compared to USD1.3114 at the equities close on Thursday. The euro stood lower at USD1.1006, against USD1.1047. Against the yen, the dollar was trading higher at JPY146.23 compared to JPY146.11.
Quantum Base made its initial public offering on London's AIM market on Friday.
The quantum science company specialising in anti-counterfeiting technology and provides authenticity tags said it expects to raise up to GBP4.8 million through its AIM listing, anticipating a market capitalisation of up to GBP14.8 million.
Quantum Base expects to admit up to 64.1 million shares at an issue price of 23.1 pence, with both its capital raise and market capitalisation subject to the results of the retail offer which is to be reported on Thursday.
The firm also said it was looking to raise up to GBP1.0 million through a conditional offer of up to 4.3 million new shares to retail investors at an issue price of 23.1p. It noted a minimum subscription of GBP250 per investor.
Minoan Group fell 54% on Friday morning.
The tourism project developer reported it will be unable to finalise its results for the year that ended October 31 by the April 30 deadline, due to "insufficient funds". As a result, the firm's shares will be suspended from trading from May 1, until results are published.
Minoan was unable to secure a further extension to its loan with DAGG, which currently stands at around GBP1.2 million and has been accruing default interest since January 1 at 12% per annum. The firm is in ongoing discussions with DAGG, and will put forward a proposal to shareholders that would see DAGG inject around GBP4.4 million into Minoan in exchange for company equity and write off around GBP1.1 million owed by Minoan.
If the proposals are rejected by shareholders, Minoan shares may be suspended earlier than May 1.
Mineral resource developer Beowulf Mining opened 35% lower.
It conditionally raised GBP1.0 million before expenses via a placing, while a rights issue of up to 27.3 million Swedish depository receipts will, if fully subscribed, raise proceeds of around GBP3.0 million. A retail offer, if fully subscribed, will raise further funds of around GBP700,000 before expenses.
Maximum gross proceeds from fundraising will total around GBPP4.6 million.
At the other end, Shuka Minerals climbed 20%.
The Africa-focused mine operator and developer said the availability period for the entire GBP2.0 million amount of its convertible note instruments has been extended to March 31, 2026, while the redemption date has been extended by 12 months to March 31, 2027.
The convertible notes were entered into in May 2024 with AUO Commercial Brokerage.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 2.8%. The Shanghai Composite index in China was closed, alongside the Hang Seng index in Hong Kong, both for the Qingming Festival, alias Tomb-Sweeping Day. The S&P/ASX 200 in Sydney closed 2.4% lower.
Brent oil was quoted lower at USD68.57 a barrel early in London on Friday, down from USD69.80 late Thursday.
"Crude oil futures have reversed their gains from early March, with prices falling after US President Trump’s tariff announcements, stoking concerns over potential global trade tensions and its impact on oil demand," commented Tickmill analyst Joseph Dahrieh.
"This pullback reflects market uncertainty and could weigh on global crude prices in the near term, particularly if trade tensions hinder economic growth in key oil-consuming regions. The outlook suggests caution, with volatility likely to increase as markets digest the full implications of the tariffs. Longer-dated futures contracts also saw declines in prices, indicating expectations of long-term risks for crude prices.
"Meanwhile, OPEC+'s decision to increase its oil output adds further bearish pressure. The organisation is aiming to supply up to 411,000 barrels per day in May, which is significantly higher than previously planned. The excess supply could add to the pressure on the oil market, in particular if demand is affected by the changes in US trade policy, leaving the market without support."
Gold was also quoted lower, at USD3,094.77 an ounce against USD3,109.85. The yellow metal is down from a record high of USD3,167.69 on Wednesday.
By Emily Parsons, Alliance News reporter
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