13 Mar, 2025 12:01 13 Mar, 2025 12:01

London midday: FTSE up but gains muted amid trade war concerns

dl city of london square mile financial district generic 12 — Sharecast / Daniel Frese via Pexels

London stocks were still higher by midday on Thursday but gains were muted as investors continued to mull the impact of Trump’s trade war.

The FTSE 100 was up just 0.1% at 8,545.82 .

Market participants were mulling the latest twists and turns in Trump's trade saga, after the US President said he would impose more tariffs following retaliatory measures from the European Union and Canada.

Trump said on Wednesday that he would respond to the countermeasures. "Whatever they charge us with, we're charging them," he said.

Russ Mould, investment director at AJ Bell, said: "Investors remain on the edge of their seat as they weigh up the impact of tariffs and whether ceasefire talks will yield an agreement between Russia and Ukraine."

On home shores, industry research out earlier showed the housing market slowed in February as mounting uncertainty started to weigh on demand.

According to the latest residential property survey from the Royal Institution of Chartered Surveyors, house prices rose in February.

The house price balance was 11, indicating ongoing growth. But the rate of growth was notably less than the balances of 25 and 21 seen in December and February.

In addition, buyer demand weakened, with the new buyer enquiries balance coming in at -14, the weakest reading since November 2023. It was also a notable decline on January’s balance of -1.

Agreed sales, meanwhile, fell into negative territory at -13, from 2 a month earlier, the softest return since last May.

Respondents said the market was reacting to upcoming changes to stamp duty, which will come into effect on 1 April, as well as mounting geopolitical and international economic uncertainties.

The market was forecast to continue softening in the short term, although most respondents still expect house prices to rise over the next 12 months, with a net balance of 47.

Simon Rubinson, Rics chief economist, said: "The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches.

"Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment.

"A key support for the market continues to be the increased flow of existing stock becoming available, giving buyers a greater choice of options, However, leading indicators around new build remain subdued for now."

Looking ahead to the rest of the day, the US producer price index for February is due at 1230 GMT.

In equity markets, Halma surged to the top of the FTSE 100 after saying it expects an adjusted EBIT margin modestly above 21% for the full year to March 2025, compared to prior guidance of around 21%.

Volution gained sharply as the engineering firm said full-year earnings were on track to beat forecasts.

IG Group rallied as the online trading and investment firm posted a rise in third-quarter revenues as it benefited from stronger market conditions and an increase in active clients.

On the downside, NatWest and Entain fell as they traded without entitlement to the dividend.

C&C Group tumbled as the Bulmers cider maker said full-year underlying operating profits would be "modestly below" target amid weaker consumer confidence and the impact of higher wages and employer taxes introduced in the Budget.

Trainline slumped as the online ticketing platform said fiscal year sales hit a record of almost £6bn and announced a new £75m share buyback, as full-year net ticket sales and revenues fell a little short of expectations.

Savills was weaker despite the real estate agency posting a large jump in annual earnings and saying that transaction volumes this year would be lifted by companies ordering staff to spend more time in the office.

Deliveroo lost ground as it hailed its first ever year of profit and positive free cash as it expanded its grocery and retail offering, but highlighted an "uncertain" consumer environment.

Market Movers

FTSE 100 (UKX)8,545.820.06%
FTSE 250 (MCX)19,801.64-0.43%
techMARK (TASX)4,717.050.21%

FTSE 100 - Risers

Halma (HLMA)2,717.00p2.92%
AstraZeneca (AZN)11,838.00p1.61%
Airtel Africa (AAF)149.00p1.43%
Imperial Brands (IMB)2,773.00p1.32%
Legal & General Group (LGEN)242.20p1.21%
Marks & Spencer Group (MKS)355.30p1.14%
Rentokil Initial (RTO)323.50p1.09%
Shell (SHEL)2,595.50p1.05%
Aviva (AV.)544.20p1.04%
Standard Chartered (STAN)1,174.50p1.03%