- FTSE 100 rises 41 points to 8,537
- US tariffs on steel begin, EU responds, UK does not
- Closely watched US inflation data softens
- 4imprint falls and Hill & Smith jumps as outlooks reflect tariff impact
4.25pm: Second wind for blue chips
The FTSE 100 found a second wind after looking like it was going to finish flat after a solid start to Wednesday.
London's blue chip index has added 41 points or 0.5% to near the close at 8,537.
Stock markets have been "all over the place once again", says Dan Coatsworth, investment analyst at AJ Bell.
He points to investor fears having "intensified" over what Trump’s aggressive trade tactics will do to the US and indeed global economy.
Airlines on both sides of the Atlantic were among the worst performing sectors after warnings from a trio of US operators this week that domestic demand was already softening, not helped by US government spending cuts.
"That had a knock-on impact to other companies who might suffer the same fate including hotel and casino operator Wynn Resorts. A small drop in customers can have a big impact on businesses like hotel companies that generally have fixed costs," he says.
While sentiment was fragile, opportunistic investors and traders have been "fishing for potential bargains", with Tesla bouncing back, among other tech stocks.
"This includes Nvidia as talk on the street gathered pace about how its valuation had gone from top of the skyscraper territory to levels that are easier to stomach."
3.29pm: FTSE gains cut
The FTSE 100's gains were all but wiped out in the past half hour, but the index has bucked up a little.
Weighing on the index are falls for BA owner IAG, down 5% after a double-downgrade from Barclays, while Smith & Nephew is down 3.9% after a downgrade from UBS.
Primark owner AB Foods is down 4.8% and JD Sports 3%, along with GSK, Reckitt and Haleon, all consumer facing names. Housebuilder Persimmon has dropped 3.9% and DIY retailer Kingfisher 2.6%.
Topping the risers are Spirax Group and Melrose, up 6.1% and 5%, as investors seem to examine the stocks after they reported results in recent days. Rolls-Royce has also now swung into green, up 3.6%.
3.16pm: Canadian tariffs
Canada has confirmed its tariff response to Donald Trump's 25% steel and aluminum levies.
Ottawa said that, from midnight, it will also impose 25% tariffs on close to $29.8 billion of imports from its neighbour.
Finance minister Dominic LeBlanc told media the government was "following a dollar for dollar approach", including tariffs on steel products worth $12.6 billion.
"The list of additional products affected by counter-tariffs includes computers, sports equipment and cast iron products, as examples," he says.
3.11pm: CMA investigation
Following an investigation, the UK Competition and Markets Authority has concluded that competition between mobile internet browsers is "not working well" and that measures might need to be taken.
Competition concerns identified by the CMA's independent inquiry group mostly related to Apple Inc (NASDAQ:AAPL, ETR:APC) policies that determine how mobile browsers, the way we access the web on mobiles, work on its devices, ie iPhones, iWatches, iPads and Macbooks.
The watchdog says the group has suggested "a number of potential interventions" to address concerns it has identified, but it is awaiting two separate investigations that the CMA is carrying out to decide whether or not to designate Apple and Google as having "strategic market status" (SMS) under the new digital markets competition act.
If this is found to be the case, then the group said the CMA should consider imposing appropriate interventions, such as "measures which could enhance the ability of other browsers to compete by offering new, innovative features to consumers, as well as enabling users actively to choose their preferred mobile browser which could drive competition".
The group has not found concerns in relation to the cloud gaming sector, following changes made by Apple.
2.52pm: AIM ins and outs
Another "up and down month" for AIM has been highlighted by the AIM Journal, which notes that London's junior market fell 2% over February compared to the 1.6% gain for the FTSE 100.
More than two thirds of the companies in the FTSE AIM 100 index suffered share price declines during the month, it was noted, but there are companies wanting to float on AIM.
The online magazine notes that this list includes accountancy firm MHA, Aussie-listed Wellnex Life and Aquis-quoted company One Health, which was covered on this website a fortnight ago.
Also, fully listed cash shell Alt Resources PLC (AIM:ALTR), which was originally known as ACP Energy, is planning to move down to AIM when it acquires a cash-generative mining royalty in a South African gold project from Theta Gold Mines Ltd (ASX:TGM).
But at the same time there are also companies choosing to delist, such as building materials retailer CMO Group PLC (AIM:CMO).
2.10pm: Some interesting notes
An interesting note from Barclays, where consumer staples analyst Laurence Whyatt is pushing back against the idea that Gen Z - people born between the late 1990s and early 2010s - has turned its back on alcohol.
The analyst says there is "a prevailing view that Gen Z has eschewed alcohol, almost completely", which is contributing to a 'structural decline' narrative in US alcohol.
"We believe this is misleading and not supported by the evidence," he says, arguing that long-term consumption trends will reassert themselves, underpinning an 'overweight' rating on Diageo (excluding the impact of EU tariffs news, see below).
Over at JP Morgan, analysts reckon it might be time to buy Trustpilot, with the shares down 20% in the past month, underperforming the wider European software sector.
Despite the slide, the American investment bank sees no reason for the underperformance, with Trustpilot growing fast and earnings expected to rise 31% this year.
Shares in Smith & Nephew PLC are down 2% after UBS downgraded stock in the med-tech firm to 'neutral' from 'buy' on valuation grounds. The price target remains at £12.50.
The downgrade reflects concerns over limited near-term earnings momentum. UBS is now 2% below consensus earnings estimates for 2025, even factoring in a strong second half of the year.
1.52pm: US tech titans surge
Wall Street has had a mixed start, with the Nasdaq charging 1.5% higher but the Dow Jones seeing initial positives quickly erased.
In between, the S&P 500 has risen 0.7%, climbing up from yesterday's six-month low. The small cap Russell 2000 is up 1%.
Top riser on the S&P is Tesla, up 8.2%, with Palantir rising 7.5%, Super Micro Computer 7.2% and Nvidia 7.1%.
In London, the FTSE has seen its gains pared, now at 0.3% for the day. The DAX remains largely undeterred, up 1.6%.
1.30pm: Diageo hit by worries over EU retaliation to US tariffs
Smirnoff and Johnnie Walker maker Diageo PLC (LSE:DGE) shares were up 1.5% earlier but have fallen into the red.
The industry group representing the spirits sector, spiritsEUROPE, has warned of the "collateral damage" in the US trade dispute,
Pauline Bastidon, trade & economic affairs director at spiritsEUROPE, said the body is "extremely concerned" by the EU's €26 billion countermeasures against the US tariffs on global steel and aluminium exports.
She urged the EU and the US to "keep spirits out of unrelated disputes" as the drinks have "become collateral damage in an unrelated trade dispute".
"As highlighted in our numerous engagements with the European Commission over the last seven years, we fail to understand how this will help with the broader, unrelated dispute on steel and aluminium."
12.36pm: US CPI lower than expected
Stocks have perked up further after US inflation for February came in lower than expectations.
The headline US consumer price index for February was up 2.8% compared to a year ago, down from 3.0% in January and below the consensus forecast of 2.9%.
CPI was up 0.2% from January, lower than the 0.3% month-on-month estimate.
Core CPI, which excludes fuel, food and other volatile prices, was up 3.1% on the year, from the previous 3.3% and below the 3.2% consensus forecast.
On the month, core CPI was up 0.2%, from 0.4% in January and versus the 0.3% expected.
12.29pm: Shares in the green as US CPI awaited
Before the US inflation number arrives, the FTSE 100 and FTSE 250 are up 0.6% and 0.8%.
In Europe, the DAX is up 1.8% and the CAC 1.4%.
US futures are pointing higher, with the S&P 500 is predicted to climb off the six-month low reached yesterday, with futures up 0.8%, while futures for the tech-powered Nasdaq are up 0.9% and for the Dow Jones up 0.5%.
11.44am: 'Too early to tell' if travel sector facing major downturn
With shares in BA owner International Consolidated Airlines Group SA (LSE:IAG) leading the FTSE fallers for the second day and Intercontinental Hotels Group PLC (LSE:IHG) also down again, analysts at Baclays say "we sympathise" with the selling of hotels and leisure shares following the warnings of weaker demand from Delta and American Airlines.
"It is simply 'too early to tell' which direction this will take," they add.
In the wider sector, caterer Compass Group PLC (LSE:CPG) is suggested as a "buy on weakness opportunity".
Barclays double downgraded IAG to a 'sell' in a separate note, with the bank warning that the "golden goose" of transatlantic travel may be "cooked", and slashing its price target for the stock.
11.03am: EU 'ready to engge' with US over tariffs
Commenting on Brussels' retaliation to US 25% tariffs on steel and aluminium products that started today, European Commission President Ursula von der Leyen says the bloc is "ready to engage in a meaningful dialogue" with the US administration.
She says the EU's trade commissioner, Maroš Šefčovič, has been instructed to resume his talks to "explore better solutions" with the White House.
"The trade relations between the European Union and the United States are the biggest in the world. They have brought prosperity and security to millions of people. And trade has created millions of good jobs on both sides of the Atlantic," she says in a statement.
She says the US tariffs "are taxes" and "are bad for business, and worse for consumers", bringing uncertainty and price rises for the economy, putting jobs at stake.
"Nobody needs that – on both sides, neither in the European Union nor in the United States."
She says the countermeasures announced today are "strong but proportionate", with the US applying tariffs worth US$28 billion and the EU's countermeasures worth €26 billion (£22 billion).
"In the meantime, we will always remain open to negotiations. We firmly believe that in a world fraught with geoeconomic and political uncertainties, it is not in our common interest to burden our economies with such tariffs. We are ready to engage in a meaningful dialogue."
10.38am: Oil tanker crash update
The captain of the Stena Immaculate cargo ship that crashed into an US oil tanker earlier this week is Russian and has been arrested.
Following the crash just offshore from Hull that resulted in large explosions and fires breaking out on both ships, The Telegraph is reporting today that the 59-year-old captain was arrested yesterday by Humberside Police on suspicion of gross negligence manslaughter in connection with the collision, with the force saying today "a 59-year-old man remains in our custody" and detectives are "continuing to conduct extensive lines of inquiry".
The ship’s German owner said the captain of the Portuguese-flagged ship was Russian, and the rest of the crew was a mix of Russian and Filipino nationals.
One member of the crew has been presumed dead as going missing during the collision.
10.14am: More movers
Looking at some more movers, Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) has leapt 15% as the gold miner restored its dividend and announced its best financial performance for 13 years, a large part down to record precious metals prices.
Profit before tax and exceptional items surged 272% to $199.1 million, with CEO Eduardo Landin hailing a "growth strategy" as mineable resources were extended and two growth projects are being developed.
Among the small caps, capAI PLC (LSE:CPAI) - which changed its name and strategy last month - surged 100% at one point in early trading after the microcap investment fund announced the appointment of Professor Ronjon Nag, a Silicon Valley-based AI expert and investor, as an executive director.
Chairman Richard Edwards calls the appointment a “major coup” and said the company, which changed its name from Dukemount Capital as part of a pivot from real estate to AI, last month would be “flexible, agile and unconstrained” in pursuing AI opportunities.
Kingswood Holdings is down almost 18% after the wealth manager revealed it is in advanced talks over a deal that would see the business taken out at a discount to the current share price.
HSQ Investments, which already owns 68.4% of Kingswood, is considering an offer to buy out the remaining shares at 7p each, compared to the last close of 8.5p.
9.43am: Tariff fatigue anyone?
Tariff fatigue is the vibe from markets, not helped by some Trump U-turns.
"The winds keep blowing in different directions on tariffs that it is impossible for markets to establish the lay of the land," says Russ Mould, investment director at AJ Bell.
"Donald Trump keeps moving the goal post and investors are getting fed up. Metal tariffs are today’s special on the menu and they’ve been a major catalyst for many of America’s trading partners to retaliate with tariffs on other goods."
Neil Wilson at Tip Ranks says: "I’m getting really bored with all this to-and-fro with tariffs.
"Trump first doubled tariffs on Canadian steel and aluminium imports to 50% at one stage after Ontario introduced a 25% surcharge on electricity exports to the US. Trump backed down and suspended the plan.
"But 25% levies on all steel and aluminium imports did come into effect, prompting a swift response from the European Union".
As for the UK, Wilson says it's "unclear" whether there will be a retaliation, "it’s playing a longer game with Trump it seems. It’s exhausting keeping up with it all."
Ipek Ozkardeskaya at Swissquote Bank, says the roll-backs from American and Canadian officials is "adding to the absurdity of the tariff situation.
"The problem is that this tariff charade has real-time consequences and that’s weighing on investor sentiment and pressuring market valuations."
She adds: "The widening gap between the raw material prices paid by Americans versus their European and Asian peers is making the American manufacturers less cost-efficient compared to rivals, weighs on business confidence and fuels inflation even before the tariffs are imposed.
"And the expectation for squeezed profit margins due to actually rising raw material prices is weighing on market valuations.
"As a consequence, the market volatility is rising as visibility becomes cloudier by the day, any market rebound may not be viable unless there is a form of stability in the White House – but that doesn’t seem to be on the menu du jour."
9.20am: European shares mostly climb, apart from Porsche and Inditex
The FTSE 100 is slowly but steadily regaining more of the ground lost in recent days, up 0.5% in morning trading so far, with the FTSE 250 up 0.3%.
Melrose Industries is topping the blue-chip index, up 7.8% followed by miners Fresnillo and Anglo American, up 3.6% and 2.6%. respectively.
British Airways owner IAG is leading the fallers for the second day, down 3.8%.
Legal & General has dropped 1.8% as its share buyback does not seem to have impressed investors.
In Europe, Germany's DAX has surged up 1.3%, with France's CAC 40 rising 0.9% and Italy's FTSE MIB up 1.1% but Spain's IBEX down 0.3%.
For Germany, gains are being led by companies that are set to benefit from spending on defence and infrastructure as talks to form a government bring hopes for a massive spending increase.
Porshe is in reverse gear, falling 3%, after the luxury carmaker slashed another profitability target.
A 7% fall for retail giant Inditex is holding back Spain's benchmark.
Inditex Q4 sales are in line and profit is ahead of consensus, says Barclays. "However, sales growth of +4% since start of Feb is below BBG consensus of c+8% for 1Q - and we suspect this may drive sentiment early on."
8.48am: Hill & Smith reassures on tariff impact
At the other end of the mid-cap index, shares in Hill & Smith Holdings PLC (LSE:HILS) are up 13.3%.
Hill & Smith, a maker of galvanised steel for road barriers, fences and other transport infrastructure, delivered earnings of EBITA of £143.5 million that beat forecasts by around 4%.
On the day when US steel tariffs are kicking in, its thoughts on the steel market outlook were in focus, with investors seemingly reassured that the group's US businesses, which delivered around 76% of operating profit, are expected to see strong trading momentum to continue in 2025.
"We are closely monitoring the effect of current trade tensions on our businesses and supply chains however we do not see a significant impact at this time," CEO Rutger Helbing said.
The outlook for Hill's UK businesses in 2025, however, is "likely to remain challenging", he said, given public sector budgetary pressures.
8.32am: 4imprint tumbles on tariff warning
The FTSE 250 is also higher this morning, despite 4imprint Group Plc (AQSE:FOUR) being a big faller, down 17% on the back of full-year results from the direct marketing products specialist.
Shares are down to the lowest since late 2022, despite earnings last year increasing more than expected, but its the recent trading and outlook that has hit investor sentiment.
Order intake was "slightly down" in the first two months of 2025, with management saying that the US tariffs and responses "may continue to influence demand in 2025".
8.13am: FTSE 100 opens higher
The FTSE 100 has opened 17 points higher, climbing 0.2% to 8,512.9 in early trades.
Aerospace groups Melrose, up 4%, and Rolls-Royce, up 1%, were topping the leaderboard, along with miners and banks.
Precious metals diggers Fresnillo and Endeavor, along with more copper-centric Antofagasta and Anglo American were up over 1%.
Retailers AB Foods, which owns Primark, and JD Sports were down either side of 3%, followed by defence group BAE Systems, down 1.8%.
7.58am: US CPI later today a 'big test for markets'
The "next big test for markets", says Deutsche Bank macro strategist Jim Reid, will be the US CPI inflation print out today at 12:30pm London time.
"This will be an important one ahead of the Fed’s decision next Wednesday, as another strong print would make it more difficult for them to cut rates this year, particularly given the potential inflationary impact of tariffs in the coming months."
Ahead of the CPI print, he notes that US Treasuries sold off yesterday, as a strong JOLTS job openings and quits report outweighed the impact of the tariffs.
Meanwhile in Europe, bond yields hit fresh highs, he adds, "as the newsflow suggested that the German Greens could still reach a deal on defence spending that would pave the way for more borrowing".
German 10yr bund yields moved up to 2.89%, their highest level since October 2023, which saw the highest bund yields since 2011.
7.51am: EU plans countermeaure tariffs as US steel leveies begin
The European Union has launched a series of "countermeasures" in response to the US tariffs of up to 25% on steel and aluminium imports that begin today.
US President Donald Trump's total tariffs will affect a total of €26 billion of EU exports, which is calculated to result in US companies paying up to €6 billion in additional import taxes.
Brussels said its response is "swift and proportionate.... designed to defend European interests", reviving retaliatory tariffs on US goods worth €6.4 billion from 1 April and planning a new package targeting a further €18 billion of US exports.
EU tariffs will be applied on products ranging "from boats to bourbon to motorbikes", it said.
7.34am: L&G unveils £0.5bn buyback
Legal & General Group PLC (LSE:LGEN) has unveiled a 5% dividend hike and a £500 million share buyback, though profits for last year were very slightly below expectations.
The size of the life insurer's buyback was larger than many analysts' predictions, with figures below £400 million having generally been forecast.
But CEO António Simões said the FTSE 100 group was seeing "positive commercial momentum" and simplifying the portfolio through the sale of Cala Homes and US Protection arms had freed up some capital.
The outlook was also said to good, with a "busy" pipeline in the pensions transfer arm.
7.15am: FTSE 100 tipped to rise but tariffs may weigh
The FTSE 100 has been expected to rebound every day this week only to continue a plunge that has seen the index lose over 375 points or 4.2% so far this month.
Futures again point to a 22-point bounce on Wednesday, after the London benchmark dropped 104.2 points to close at 8,495.99 yesterday.
On the plus side this morning, Ukraine has agreed to a 30-day ceasefire, with Russia's response awaited.
On the minus side, 25% US tariffs on steel and aluminum began overnight, with the European Union announcing “countermeasures” on US steel and aluminum products, textiles, home appliances, plastics, wood, eggs and other agricultural products.
US stocks fell overnight, with the Dow Jones tumbling 1.1% and the S&P 500 dropping 0.8%, while the Nasdaq dipped 0.2%.
Asian markets are mixed, with the Hang Seng down 1.3% but the Nikkei up slightly.
5am: What to watch on Wednesday
Speculation has built around a surprisingly big buyback when L&G updates... Read more
US inflation will be the key item of economic data, after Federal Reserve chair Jerome Powell’s said last week that the US central bank needs to see more weakening of the jobs market and further progress on disinflation before cutting rates again.
January’s consumer price inflation report was stronger than expected, with both the headline consumer price index and core CPI rising more than expected.
Economists expect headline CPI to fall back to 2.9% from 3%, and for core CPI to ease to 3.2% year on year, with most saying it is probably too early to see the impact of tariffs in this data even though a 10% tariff on China was imposed last month.
Announcements due on 12 March:
Finals: Balfour Beatty PLC, Forterra PLC, 4Imprint Group PLC, Ferrexpo PLC, The Gym Group PLC, Hill & Smith PLC, Hochschild Mining PLC, Legal & General Group PLC, Pensionbee Group PLC
US earnings: Adobe, UiPath
AGMs: Chrysalis Investments Ltd, Nexus Infrastructure PLC, Pantheon Resources PLC, Phoenix Spree Deutschland Ltd, River And Mercantile UK Micro Cap Investment Company Ltd
Economic announcements: Inflation (US), Crude Oil Stocks (US)