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London stocks fell in early trade on Friday, taking their cue from heavy losses in the US and Asia amid concerns about Donald Trump’s tariff threats.
At 0828 GMT, the FTSE 100 was down 0.4% at 8,723.95.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Tariffs continue to drive the narrative, and talk of a reprieve for Canada and Mexico has evaporated as next Tuesday’s deadline approaches. President Trump has also vowed to slap an additional 10% import duty onto Chinese goods, as he leans heavily on the anti-fentanyl narrative to justify the trade restrictions. The only certainty in this saga is uncertainty, so keep a close eye on developments between now and 4 March.
“Next on the agenda is reciprocal tariffs pencilled in for 2 April with other major US trading partners. The EU, in particular, will be in focus. An amicable start to talks with UK premier Keir Starmer looks to have set the tone for a potential trade deal with the UK but with no details outlined it has not been enough to boost enthusiasm for London listed shares.”
Investors were also mulling the latest data from mortgage lender Nationwide, which showed that house prices rose more than expected in February.
Prices were up 0.4% on the month following a 0.1% increase in January, beating expectations for a 0.2% jump.
On the year, house prices rose 3.9% in February, down from 4.1% the month before. The average price of a home stood at £270,493, up from £268,213.
Nationwide chief economist Robert Gardner said housing market activity has remained resilient in recent months, despite ongoing affordability challenges.
“Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14% compared with the same period in 2023,” he said. “However, taking 2024 as a whole, transactions were still modestly (6%) lower than the levels prevailing before the pandemic struck in 2019.
“In terms of the pattern of transactions, it is notable that first-time buyer activity continued to recover, with mortgage completions in 2024 just 5% below 2019 levels. This represents a solid performance, given the interest rate environment – for example, five-year fixed mortgage rates are currently around 4.4% (for borrowers with a 25% deposit) compared to c2% in 2019.
“Cash transactions remained particularly robust, with activity 2% above pre-pandemic levels.”
Gardner said changes to stamp duty at the start of April are likely to generate volatility in transactions in the near term, as buyers bring forward their purchases to avoid the additional tax.
“This will likely lead to a jump in transactions in March, and a corresponding period of weakness in the following months, as occurred in the wake of previous stamp duty changes.”
In equity markets, Morgan Advanced Materials tumbled as it said demand in a number of its end-markets was uncertain and that it expects a mid single-digit organic revenue decline in 2025 and assumes no recovery in the second half.
On the upside, British Airways owner IAG flew higher as it reported a better-than-expected jump in annual profits after doubling earnings in the final quarter, driven by “robust” leisure travel and said it planned to return a further €1bn to shareholders.
Adjusted operating profit rose 26% to €4.4bn, beating estimates of €4.08bn.
Pearson gained as the education publisher said annual profit rose 10% and unveiled a £350m share buyback as it reiterated guidance for 2025.
IMI was also a high riser as it hailed record full-year profits and announced a further £200m share buyback.
Top 10 FTSE 100 Risers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
International Consolidated Airlines Group S.a. | +4.93% | +16.70 | 355.40 |
| 2 |  |
Pearson Plc | +4.12% | +55.00 | 1,390.50 |
| 3 |  |
Weir Group Plc | +3.41% | +78.00 | 2,364.00 |
| 4 |  |
Haleon | +3.01% | +11.50 | 393.90 |
| 5 |  |
Rolls-royce | +1.75% | +12.80 | 744.40 |
| 6 |  |
Natwest | +0.85% | +4.00 | 474.90 |
| 7 |  |
Diageo Plc | +0.80% | +17.00 | 2,150.00 |
| 8 |  |
Barclays | +0.75% | +2.25 | 303.30 |
| 9 |  |
Bt Group Plc | +0.73% | +1.15 | 158.75 |
| 10 |  |
Imperial Brands Plc | +0.68% | +19.00 | 2,805.00 |
Top 10 FTSE 100 Fallers
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
St. James’s Place Plc | -3.73% | -41.00 | 1,057.00 |
| 2 |  |
Scottish Mortgage Investment Trust Plc | -3.19% | -34.00 | 1,031.50 |
| 3 |  |
Smurfit Westrock Plc | -3.13% | -132.00 | 4,082.00 |
| 4 |  |
Bhp Group Limited | -2.61% | -51.50 | 1,920.50 |
| 5 |  |
South32 Limited | -2.13% | -3.80 | 174.70 |
| 6 |  |
Antofagasta Plc | -1.94% | -34.50 | 1,742.50 |
| 7 |  |
Carnival Plc | -1.86% | -32.00 | 1,687.50 |
| 8 |  |
Rio Tinto Plc | -1.86% | -89.50 | 4,729.00 |
| 9 |  |
Rentokil Initial Plc | -1.68% | -6.70 | 391.60 |
| 10 |  |
Flutter Entertainment Plc | -1.51% | -330.00 | 21,480.00 |
US close: Stocks lower as Trump’s tariff threats return to focus
Major indices closed lower on Thursday following earnings from AI-darling Nvidia overnight and an update from Donald Trump regarding his proposed tariffs on a number of America’s largest trading partners.
At the close, the Dow Jones Industrial Average was down 0.45% at 43,239.50, while the S&P 500 lost 1.59% to 5,861.57 and the Nasdaq Composite saw out the session 2.78% weaker at 18,544.42.
The Dow closed 193.62 points lower on Thursday, taking a significant bite out of gains recorded in the previous session.
Trump said on Thursday that his proposed tariffs on Mexico and Canada would come into effect on 4 March and also stated that Chinese imports would be hit with an additional 10% tariff. Trump’s sweeping 25% tariffs on imports from Mexico and Canada were put on a one-month pause back on 3 February.
He also said China, which has already been slapped with a 10% tariff on its products, will be charged an additional 10% tariff and added, that the April Second Reciprocal Tariff date “will remain in full force and effect”. However, Trump’s claims contradicted comments made by National Economic Council director Kevin Hasset, who said the president would make a decision on tariffs “for all countries” after evaluating a study set to take place on 1 April.
On the macro front, Americans lined up for unemployment benefits at an accelerated clip in the week ended 22 February, according to the Labor Department. Initial jobless claims surged by 22,000 to 242,000 last week, the biggest increase in more than two months and far above expectations for a broadly flat reading of 221,000, while continuing claims eased by 5,000 at 1.86m. The four-week moving average, which aims to smooth out week-to-week volatility, increased by 8,500 week-on-week to 224,000.
On another note, the Bureau of Economic Analysis said the US economy grew at an unrevised 2.3% year-on-year clip in Q4, unchanged from advanced estimates but down from Q3’s 3.1% annualised growth.
Still on data, the National Association of Realtors pending home sales index decreased by 4.6% year-on-year in January to a record low of 70.6, far bigger than the 1.3% fall predicted by economists. Pending home sales dropped 5.2% following December’s 5% drop.
Finally, the Kansas Federal Reserve‘s manufacturing production index fell to -13 in February, the lowest reading in five months.
In the corporate space, Nvidia shed more than 8% even after the chipmaker beat fourth-quarter estimates on both the top and bottom lines and issued strong forward guidance, pointing to continued demand despite the emergence of Chinese competitor DeepSeek, while Salesforce shares headed south following disappointing Q4 revenues and a softer-than-expected outlook.
Friday newspaper round-up: Councils, GSK, business confidence
Almost half of councils in England risk falling into bankruptcy without action to address a £4.6bn deficit amassed under a Conservative-era policy, the government’s spending watchdog has warned. In a damning report, the National Audit Office said that rising pressure on public services and repeated delays to reform the funding of local government meant town halls were in an “unsustainable” financial position. – Guardian
The annual pay of GSK’s chief executive could rise to nearly £22m in three years’ time as the pharmaceutical company attempts to offer US-style pay packets to top executives. Emma Walmsley’s package could increase to a maximum of £21.56m if the company’s share price rises by at least 50% and it hits stretching targets, according to its annual report. – Guardian
The boss of a multibillion-pound hotel group has blamed Labour for his decision to slow investment in Britain and focus overseas instead. Greg Hegarty, the co-chief executive of PPHE Hotel Group, which runs the Park Plaza and art’otel brands, said he was prioritising countries such as Spain and Italy over the UK because of the Government’s economic policies. – Telegraph
Sir Keir Starmer met Donald Trump in the Oval Office on Thursday to discuss everything from Ukraine to trade deals. The Prime Minister smoothed the way with a letter from King Charles personally inviting the US president for a state visit. No date has been confirmed. Yet officials would do well to make sure it is not in May. – Telegraph
Business confidence bounced back to a post-election high this month, driven by rising optimism about the state of the economy. A monthly survey of 1,200 UK companies reported a 12-point jump in sentiment in February to the highest level since August 2024 — the aftermath of Labour’s election victory, according to Lloyds Banking Group. – The Times
