FTSE 100 climbs after temporary easing of Trump tariff fears
FTSE 100 climbs after temporary easing of Trump tariff fears
Share:
The FTSE 100 rose on Wednesday, clawing back some of the falls seen earlier in the week caused by US President Donald Trump announcing trade tariffs on some countries. London’s blue-chip index gained 53 points to finish the day at 8,623, or a 0.6% rise. The FTSE had fallen on Monday and Tuesday amid a range of announcements on tariffs from Mr Trump. However, after he agreed to delay the measures against US neighbours Canada and Mexico, the sharp swings seen on stock markets globally eased.
Chris Beauchamp, an analyst at trading platform IG, said that a “positive mood” was re-emerging on financial markets. He cautioned that while Mr Trump’s attention appears to have moved away from tariffs, he “could easily return to his favourite topic soon”. “Nonetheless, volatility is down once more, and calm prevails for the moment,” he said. In Europe, France’s Cac 40 fell 0.2%, and in Frankfurt the Dax was up 0.2%.
On Wall Street, the S&P 500 was 0.2% in the green and the Dow Jones had climbed 0.3%. The pound had gained against the dollar, up 0.3% to 1.252 after markets closed. It was 0.1% down against the euro at 1.201. In company news, Santander revealed annual profits tumbled by 38% in the UK. The Spanish-owned high street banking giant reported that the drop was because of provisions for possible motor finance mis-selling and higher savings rates.
It comes as questions remain over the future of the UK business, despite efforts by Spanish owner Banco Santander to quash rumours the lender is considering pulling out of the UK. Meanwhile, pharmaceuticals giant GlaxoSmithKline (GSK) lifted its long-term sales guidance as it hailed a strong drugs pipeline. The company revealed that turnover grew by 3%, and it was buoyed by a one-fifth rise in sales of speciality medicines such as HIV treatments and oncology drugs.
Shares rose 7.6% on Wednesday. The biggest risers on the FTSE 100 were GSK, up 105p to 1485p, Fresnillo, up 41.5p to 755p, Marks & Spencer, up 12.6p to 357.6p, Endeavour Mining, up 50p to 1715p, and Tesco, up 10.2p to 387.6p. The biggest fallers on the FTSE 100 were Diageo, down 92.5p to 2235p, DCC, down 195p to 5300p, Croda, down 103p to 3110p, Spirax, down 175p to 7765p, and Prudential, down 13p to 655p.
