4th Jul 2025 09:07
(Alliance News) - European blue-chips opened lower on Friday, following US President Donald Trump winning approval for his controversial spending bill, and as the ECB president calls for a stronger EU single market to combat US tariffs.
The FTSE 100 index opened down 24.12 points, 0.3%, at 8,799.08. The FTSE 250 was down 112.01 points, 0.5%, at 21,590.57, and the AIM All-Share was down 1.03 points, 0.1%, at 775.22.
The Cboe UK 100 was down 0.2% at 877.58, the Cboe UK 250 was down 0.6% at 19,090.75, and the Cboe Small Companies was down 0.1% at 17,504.84.
In European equities on Friday, the CAC 40 in Paris shed 0.7%, while the DAX 40 in Frankfurt lost 0.5%.
"Optimism is evaporating at the end of the week, as the US tariff deadline looms and the signs are that many countries will face higher duties than expected," commented Hargreaves Lansdown analyst Susannah Streeter.
"There's a distinct lack of Friday fizz for the FTSE 100, as investors mull repercussions for the global economy. Investors are also assessing the implications of the passing of Trump's big tax cut bill which will add to the mountain of US debt."
The pound was quoted up at USD1.3661 early on Friday in London, compared to USD1.3654 at the equities close on Thursday. The euro stood higher at USD1.1769, against USD1.1762. Against the yen, the dollar was trading lower at JPY144.39 compared to JPY144.87.
Versarien rose 15% at the London market open.
The Gloucestershire, England-based advanced materials engineering group has extended its existing manufacturing licence deal, and know-how licence and technical assistance agreement with Montana Quimica.
Under the terms of the deal, Montana will pay Versarien GBP25,000 for the know-how and technical assistance, and when Montana begins manufacturing products under the agreements, a further GBP25,000 payment will be made to Versarien plus 5% of the total sales revenue earned from products using Versarien's intellectual property. This is subject to minimum royalty payments of GBP10,000 a year.
Huddled Group gained 11%.
The Nottingham, England-based investor in e-commerce brands has partnered with e-commerce solutions provider THG Ingenuity to "accelerate" its growth plans.
Huddled also received an approach from Shard Capital Partners to invest GBP1.5 million at the current market price of 3.2 pence per share to support the firm's "growth ambitions", it said.
Huddled has accepted the funding proposal, and said it will allow the firm to executive its current pipeline of commercial opportunities as well as providing additional working capital.
At the other end, Thruvision sank 11%.
The Abingdon, England-based provider of walkthrough people-screening technology has raised around GBP2.1 million through an oversubscribed placing of 212.5 million new shares at 1 pence each.
It added that some directors and staff also intend to subscribe for a further 37.5 million new shares at the same price to raise an additional GBP375,340 before expenses. These subscriptions will be delayed while the company is in a closed period ahead of its results release.
Thruvision also intends to launch a retail offer for up to 25 million new shares at the same placing price, to raise up to GBP250,000 before expenses.
In Asia on Friday, the Nikkei 225 index in Tokyo improved 0.1%. In China, the Shanghai Composite gained 0.3%, while the Hang Seng index in Hong Kong faded 0.7%. The S&P/ASX 200 in Sydney closed up 0.1%.
China said it will impose "anti-dumping" taxes on brandy imported from the EU starting from Saturday, adding to tensions between the major trading partners.
Its tariff commission "has decided to impose anti-dumping duties on imports of relevant brandy originating in the EU from July 5, 2025", Beijing's commerce ministry said in a Friday statement.
Meanwhile, Chinese Foreign Minister Wang Yi struck a conciliatory tone towards Germany and Europe in the ongoing trade dispute over critical rare earths during a visit to Berlin on Thursday.
The issue of rare earths "was not, is not and will not be a problem between China and Europe, between China and Germany," Wang said, according to an official translation, at a press conference with Foreign Minister Johann Wadephul.
If applications are submitted in accordance with the law, "the normal needs of Europe and Germany can also be met."
Wadephul said uncertainties and often opaque export restrictions on rare earths were damaging trade relations and also "China's image in Germany as a reliable trading partner overall."
Individual solutions would not be enough and would not restore lost trust, Wadephul said.
Efforts are ongoing underway to find sustainable solutions to "bring about the relaxation that is urgently needed," he said.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, the S&P 500 rising 0.8% and the Nasdaq Composite gaining 1.0%.
US President Donald Trump will sign his flagship tax and spending bill Friday in a pomp-laden Independence Day ceremony featuring fireworks and a flypast by the type of stealth bomber that bombed Iran.
Trump pushed Republican lawmakers to get his unpopular "One Big Beautiful Bill" through a reluctant Congress in time for him to sign it into law on the US national holiday – and they did so with a day to spare Thursday.
US financial markets are closed on Friday for Independence Day.
The sprawling mega-bill honours many of Trump's campaign promises: boosting military spending, funding a mass migrant deportation drive and committing USD4.5 trillion to extend his first-term tax relief.
The legislation is the latest in a series of big wins for Trump, including a Supreme Court ruling last week that curbed lone federal judges from blocking his policies, and the US air strikes that led to a ceasefire between Israel and Iran.
But it is expected to pile an extra USD3.4 trillion over a decade onto the US deficit.
The president of the European Central Bank, ECB, Christine Lagarde, believes that the EU should respond to US President Donald Trump's tariff policy by strengthening its single market.
"Of course, the US is a big country, an important place and also an important trading partner for us. But what we have to do is put our own house in order," the central bank chief said on German radio on Friday.
"We have huge potential in Europe," she said, and stressed the importance of ensuring that goods, capital and people can move freely within the community.
Lagarde called for internal barriers to be overcome and for licensing procedures and other national requirements to be further harmonized.
The yield on the US 10-year Treasury was quoted at 4.34%, widening from 4.33%. The yield on the US 30-year Treasury was quoted at 4.86%, widening from 4.85%.
Brent oil was quoted down at USD68.48 a barrel early in London on Friday from USD68.67 late Thursday.
Gold was quoted higher at USD3,339.85 an ounce against USD3,330.30.
The UK government has unveiled its plan to almost double onshore wind across England by 2030.
Ministers want to expand the country's onshore wind capacity from 14.8 gigawatts to 27-29 gigawatts by the end of the decade.
It comes as part of wider government ambitions to transition towards a clean power system by 2030, with the hope of boosting economic growth, creating jobs, reducing bills, decarbonising the grid and strengthening energy security.
Still to come on Friday's economic calendar, a UK construction PMI reading soon, followed by eurozone PPI figures.
By Emily Parsons, Alliance News reporter
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