12th Aug 2025 09:02
(Alliance News) - Stock prices in Europe traded largely higher on Tuesday morning, after a US-China trade truce was extended, and as investors look ahead to inflation data from the world's largest economy this afternoon.
The FTSE 100 index traded up 21.34 points, 0.2%, at 9,151.05. The FTSE 250 added 51.59 points, 0.2%, at 21,941.08, and the AIM All-Share was up 2.44 points, 0.3%, at 760.65.
The Cboe UK 100 was up 0.2% at 915.54, the Cboe UK 250 was 0.3% higher at 19,325.43, and the Cboe Small Companies was down 0.2% at 17,080.36.
In European equities on Tuesday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt was flat.
US President Donald Trump on Monday ordered a delay in the reimposition of higher tariffs on Chinese goods, hours before a trade truce between Washington and Beijing was due to expire.
The White House's halt on steeper tariffs will be in place until November 10.
"I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days," Trump wrote on his Truth Social platform. The truce on steeper levies had been due to expire Tuesday.
While the US and China slapped escalating tariffs on each other's products this year, bringing them to prohibitive triple-digit levels and snarling trade, both countries in May agreed to temporarily lower them.
As part of their May truce, fresh US tariffs targeting China were reduced to 30% and the corresponding level from China was cut to 10%. Those rates will now hold until November – or whenever a deal is cut before then.
Around the same time that Trump confirmed the new extension, Chinese state media Xinhua news agency published a joint statement from US-China talks in Stockholm saying it would also extend its side of the truce.
SPI Asset Management analyst Stephen Innes commented: "Still, let's not get romantic about this 'truce.' A 30% surcharge on Chinese imports remains glued to the tape, on top of the legacy tariffs from Trump's first term. Economists warn it's still a tax on the US consumer — slow poison for growth, with an inflation kicker if the supply chain gets squeezed again."
Sterling rose to USD1.3453 on Tuesday morning, from USD1.3402 at the time of the London equities close on Monday. The euro traded at USD1.1620, up from USD1.1591. Against the yen, the dollar rose to JPY148.23 from JPY148.09.
The yield on the 10-year US Treasury was unchanged at 4.28%. The yield on the 30-year remained at 4.85%.
The UK unemployment rate was unmoved in June, numbers on Tuesday showed, while an early estimate showed a monthly decline in payrolled employees eased in July.
The Office for National Statistics said the rate of unemployment in the three months to June remained at 4.7%, where it also had stood in the three months to May. Compared to the three months to March, however, the unemployment rate picked up from 4.5%.
The latest figure was in line with the FXStreet-cited market forecast.
Average weekly earnings, including bonuses in the three months to June eased to 4.6% from 5.0% in the period to May. Growth of 4.7% had been expected, according to FXStreet.
Regular pay growth remained at 5.0%, in line with expectations.
The ONS said an estimate showed payrolled employees fell by 149,000 on-year in June, and by 26,000 on-month.
"The early estimate of payrolled employees for July 2025 decreased by 164,000 on the year, and by 8,000 on the month," the ONS added.
US inflation data follows at 1330 BST.
Analysts at ING commented: "Despite some positioning rebalancing ahead of the release, a hotter-than-expected print should still support the dollar, as markets may revise down expectations for a September Fed cut to below 20bp. However, we think labour market data is more influential than inflation, given the consensus view that tariff-induced price shocks are transitory and last month's large payroll revisions."
In London, Spirax shares jumped 18%. Thermal energy and fluid technology company Spirax backed its annual outlook but reported a decline in half-year earnings.
Pretax profit in the first six months of 2025 declined 30% to GBP87.9 million from GBP124.8 million a year prior. Revenue fell 0.6% to GBP822.2 million from GBP827.0 million. On an organic basis, revenue rose 3% on-year.
"We have delivered first half results in line with expectations despite the challenging macroeconomic environment, demonstrating the strength of the group's direct sales business model," Chief Executive Officer Nimesh Patel said.
Spirax raised its interim dividend by 2.9% to 48.9p from 47.5p.
"Our group guidance for the full year remains unchanged. We continue to anticipate organic growth in group revenues consistent with that achieved in 2024 and well ahead of [industrial production growth]," Spirax said. "Group adjusted operating profit margin is expected to be ahead of the currency adjusted 19.4% in 2024, driving mid-single digit organic growth in adjusted operating profit."
Bellway shares rose 1.5%. It said home completions increased ahead of guidance in its recently ended financial year, despite "headwinds for our industry". Bellway said housing completions increased by 14% to 8,749 homes in the year to July 31, topping 7,654 in financial 2024.
The average selling price was GBP316,000, up from GBP307,909. Both the completions and selling price were "slightly ahead of previous guidance".
Housing revenue spiked 17% to top GBP2.76 billion, and the underlying operating margin is "expected to approach 11%", compared to 10% a year prior.
"Bellway has delivered a solid performance despite ongoing headwinds for our industry. There was good growth in volume output and an improvement in underlying margin which are set to drive a strong increase in profits for FY25. We have entered the new financial year with a healthy forward order book and outlet opening programme and, if market conditions remain stable, we are well-positioned to deliver further growth in FY26," CEO Jason Honeyman said.
Bellway said it is now "finalising details of a refined capital allocation framework". It will set this out in its annual results which will be released on October 14.
Looking further ahead, it said: "For FY26, we expect to maintain broadly flat average outlet numbers and based on a private reservation rate per site per week similar to the 0.57 achieved in FY25, we are well-positioned to deliver further growth in volume output to around 9,200 homes and increase cash generation for shareholder returns."
Elsewhere in London, Rome Resources added 10%. It reported "encouraging" findings from ongoing exploration activities at its Mont Agoma prospect.
"Recent drilling has encountered tin and copper mineralisation at both newly identified zones in addition to deeper extensions of known zones," it said.
In Sydney, the S&P/ASX 200 added 0.4%. The Reserve Bank of Australia cut interest rates on Tuesday, as expected, with inflation continuing to moderate.
A 25 basis point cut took the cash rate target to 3.60%. Australia's central bank noted it has cut rates by 75 basis points since the beginning of the year. The RBA last cut its cash rate in May, lowering it by 25 basis points to 3.85% from 4.10%, before unexpectedly holding rates steady in July.
The RBA said the decision on Tuesday was unanimous.
In Tokyo, the Nikkei 225 rose 2.2%. Financial markets in Tokyo were closed at the start of the week.
In China, the Shanghai Composite was up 0.5%. The Hang Seng Index was 0.3% higher.
By Eric Cunha, Alliance News news editor
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