9th Apr 2025 08:59
(Alliance News) - Europe opened in the red on Wednesday, as Tuesday's gains were sharply reversed in the wake of fresh US tariffs on China.
The FTSE 100 index opened down 134.23 points, 1.7%, at 7,776.30. The FTSE 250 was down 293.86 points, 1.6%, at 18,055.29, and the AIM All-Share was down 7.08 points, 1.1%, at 634.58.
The Cboe UK 100 was down 1.6% at 774.66, the Cboe UK 250 was down 1.7% at 15,700.63, and the Cboe Small Companies was down 0.3% at 14,618.76.
US President Donald Trump's tariffs on dozens of economies came into force Wednesday, including over 100% in levies against Chinese goods, sending markets into a tailspin again as the global trade war intensified.
Following the sweeping 10% tariffs that took effect over the weekend, rates on imports to the US from exporters like the EU or Japan rose further at 05:01 BST Wednesday.
China – Washington's top economic rival but also a major trading partner – is the hardest hit, with tariffs imposed on its products since Trump returned to the White House now reaching 104%.
China vowed on Wednesday it would take "firm and forceful" steps to protect its interests.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was 3.9% lower. In China, the Shanghai Composite was up 1.3%, while the Hang Seng index in Hong Kong was up 1.1%. The S&P/ASX 200 in Sydney closed 1.8% lower.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average slipping 0.8%, the S&P 500 fading 1.6% and the Nasdaq Composite down 2.2%.
UK Chancellor Rachel Reeves insisted Britain is "accelerating trade deals with the rest of the world," as US tariffs come into effect.
The chancellor and Business secretary will later meet India's finance minister for talks aimed at negotiating a deal with the country as the chancellor said she wanted to create "the best possible conditions" for British business in a "changing world".
In European equities on Wednesday, the CAC 40 in Paris was down 2.3%, while the DAX 40 in Frankfurt was down 2.3%.
Still to come on Wednesday's economic calendar, minutes from the last US Federal Open Market Committee meeting.
The pound was quoted at USD1.2814 early on Wednesday in London, up from USD1.2772 at the equities close on Tuesday. The euro stood higher at USD1.1044 against USD1.0914.
Against the yen, the dollar was trading lower at JPY145.43 compared to JPY146.95.
"The combination of heightened recession risks and trade tensions is likely to continue to weigh on the greenback, as investors fled to the yen and Swiss franc. Meanwhile, US Treasury yields rose across maturities, with the 10-year yield briefly surging to 4.5%, its highest in multiple weeks, as liquidations extend to safer assets," commented Exness analyst Maria Agustina Patti.
"Looking ahead, traders will closely monitor US inflation figures due later this week, alongside the release of the FOMC meeting minutes. Any sign of cooling price pressures or a more dovish tone from the Fed may fuel expectations of additional rate cuts and add to the downside pressure on the dollar."
M Winkworth was up 3.6% at London's market open on Wednesday.
The franchisor of real estate agencies declared a first-quarter dividend of 3.3 pence per share, up 10% from 3.0p the year before.
At the other end, Audioboom slipped 9.2%.
The podcast publisher reported a swing to pretax profit of USD904,000 during 2024, from a USD16.8 million loss the year before. Revenue grew 13% to USD73.4 million from USD65.0 million.
Audioboom anticipates "record" revenue and adjusted earnings before interest, tax, depreciation and amortisation profitability in 2025.
Adjusted Ebitda in the first quarter of 2025 multiplied to USD700,000 from USD70,000 the year before, and revenue was up 1.2% on-year to USD17.3 million from USD17.1 million.
Sunrise Resources faded 8.8%.
The company focused on industrial mineral projects in Nevada noted on Wednesday the extent of its drill-ready precious metal portfolio, as gold prices rise.
"We hold our precious metal projects as available for sale or joint venture whilst we focus on progressing our industrial minerals projects but I think it is timely that the company highlights to investors, shareholders and potential partners the extent of our portfolio of precious metal projects as the value inherent in these projects is often overlooked. All are drill ready and most are owned 100% by the Company without underlying royalty or other interests," said Executive Chair Patrick Cheetham.
Gold was quoted up at USD3,044.40 an ounce early in London on Wednesday from USD3,009.89 late Tuesday.
Brent oil was quoted lower at USD61.25 a barrel against USD63.95.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
M WinkworthOneiro EnergySunrise Res