- FTSE 100 up 51 points at 7,964.18
- Defensives stocks sought
- BP shares fall on weaker Q1
- Wall Street quiet - for a change
Close: Footsie finishes in the green but off its session high
That's it, folks! And what a week it has been with volatile global stock markets 'whip sawing' the whim of the American president and what looks like a deeply flawed tariff plan.
While there's been a 90-day halt to the most punitive of the levies, China has been excluded from it. So, the two largest global economies are in the first salvos of a trade war.
The UK top stocks index got away lightly, ending the week just 1.1% lower. It looked far worse before Trump called his tariff hiatus.
15.35: Travel stocks on the block as recession looms
The FTSE 100 remained firmly in positive territory but off its highs for the day as Wall Street opened higher. While defensive such as the grocers were in demand International Consolidated Airlines Group SA (LSE:IAG) and Intercontinental Hotels Group PLC (LSE:IHG) were among the sharpest fallers on Friday, as growing concerns over the global economic outlook weighed heavily on travel and leisure stocks.
IAG, the owner of British Airways and Iberia, dropped 2.5% to 239.6p, while InterContinental Hotels Group fell 1.5% to 7,675p.
The declines came as investors reacted to the escalating trade tensions between the United States and China, with President Donald Trump vowing to press ahead with punitive tariffs that risk triggering a broader slowdown in global commerce.
Analysts warned that the tit-for-tat measures between the world’s two largest economies are likely to dampen consumer and corporate travel spending, particularly on long-haul routes and international accommodation, areas where both IAG and IHG are heavily exposed.
While sectors such as energy and financials also registered losses (BP slipped 1.5% after downgrading its forecasts), the travel and hospitality sector bore the brunt of a market increasingly pricing in a slowdown in global activity.
The latest tariffs (and the 90-day pause on other levies) come at a delicate time for the aviation industry, which is already grappling with higher fuel costs, labour pressures and a recovery in demand that remains patchy across regions.
For IHG, the risks are more closely tied to corporate travel and the business conference cycle, both of which could be vulnerable if economic confidence deteriorates.
Informa PLC (LSE:INF), the exhibitions and publishing group, was also hit, falling 1.8% to 670.6p, reflecting the same concerns around international business travel and events spending.
The moves follow a choppy week for equity markets, as hopes of a trade truce were dashed by increasingly hawkish rhetoric from
13.40pm: Footsie firms anticipating positive Wall Street open
The FTSE 100 firmed ahead of Wall Street's open with Dow Futures indicating a triple-digit gain for the US stocks.
It is expected to be a much more subdued start to proceedings in tech-land with Nasdaq expected to open in a more muted fashion, albeit in positive territory.
Returning to the UK, the risers' list is made up of precious metals stocks (see our earlier story) and defensives. Tesco PLC (LSE:TSCO) was well-bid after its latest update on trading, while Sainsbury was far behind.
As for the losers, travel-related stocks will inevitably be hit by a forecast downturn in economic prospects. Anticipating this, traders marked British Airways and Iberia owner IAG and Hilton hotel group chain IHG lower.
12.33 pm: Gold stocks on the rise
Precious metals stocks led the FTSE 100 higher on Friday, with Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Fresnillo PLC (LSE:FRES) the top risers, after gold surged to a fresh all-time high.
The precious metal was trading at $3,219.93 an ounce by midday, driven by renewed investor appetite for safe-haven assets amid market turbulence triggered by US trade policy.
“Gold continues to attract buyers who continue to look for safe havens amid the weaker dollar, and the relentless stream of competing tariff headlines,” said David Morrison, senior market analyst at Trade Nation.
“But it is now up over 8% since Wednesday, so ‘caveat emptor.’ Silver has yet to garner the same level of interest as gold.”
The Royal Mint also reported strong demand for physical gold, including coins and bars, as investors look to hedge against geopolitical and economic uncertainty.
The surge in gold has supported London-listed miners and boosted wider interest in precious metals.
Endeavour was up 6% and Fresnillo 5.5%
11.30am: But can it last?
In what's turning out to be a pretty volatile session, the FTSE 100 has turned around and is now back where it started this morning, up 54 points, that's 0.7%, at 7,967.64.
Fresnillo PLC (LSE:FRES) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) continue to lead the way, up 6% and 5% respectively, thanks to a close to 5% jump in the gold price to $3,228.62.
BA owner International Consolidated Airlines Group SA (LSE:IAG) tops the loser board, down 2.4%. Perhaps the current market turmoil has led to cancelled holidays.
BP PLC (LSE:BP.) meanwhile has pared some of its losses and is now just 1% down.
10am: Losses widen
The FTSE 100 extended its losses as Friday's session progressed, down 36 points, or 0.45%, to 7,877.26 two hours into trading.
“There remains considerable uncertainty around the impact of tariffs on economies and company earnings, and that could keep markets volatile for some time," said AJ Bell's Russ Mould.
"Investors shouldn’t panic, however, as history shows that markets have a habit of going through bad patches and then recovering. It’s important to stay calm, stay focused and to stay invested so as to be in a position to ride the recovery if or when it comes.”
9.30am: FTSE briefly turns positive
London's blue chips headed back into the green shortly after 9am, before falling back again. An hour and a half into trading, the Footsie was just 4 points lower at 7,909.43.
US futures have also turned negative, pointing to another weak start for US stocks. Dow futures are currently down 0.23%, while those for the S&P 500 and the Nasdaq are 0.19% and 0.22% lower respectively.
"The continuing surge in the gold price lent particular support to the likes of Fresnillo and Endeavour Mining, offset by a dip in BP whose first quarter trading update added to the recent woes of a weaker oil price with a projection that upstream production would fall. The shares have now fallen by some 17% this year, as opposed to the preferred sector play Shell which has been confined to an 8% decline," internative investor's Richard Hunter commented earlier.
"The FTSE100 as a whole has pared some of its earlier losses but remains down by 2.7% in the year to date, with the uncertain Chinese outlook and a faltering oil price weighing on its important energy and resource sectors.”
9.15am: Shein's London IPO gains traction
Shein’s getting closer to going public in London after getting the thumbs-up from the Financial Conduct Authority, according to a Reuters report.
The fashion giant, which raked in $38 billion last year, had to tackle concerns over labour practices and pressure from campaigners. Investors also pushed to cut its valuation to around $30 billion.
“London is crying out for new listings of scale and Shein getting its IPO off the ground and shares listed could help raise the profile of the UK market and potentially draw in more big names," commented AJ Bell's Russ Mould.
"The UK regulator’s apparent green light is undoubtedly significant, particularly in light of some of the concerns which have been expressed around Shein’s corporate governance and the ethics of its supply chain."
It’s not a done deal yet though – Shein still needs the green light from Chinese regulators to move forward.
9am: FTSE's gains short-lived
After an exuberant start, London's blue-chip index turned around in early trade and was down 13 points at 7,900.28 an hour into trading.
BP PLC (LSE:BP.) is now down 2.4%, followed by British Airways owner International Consolidated Airlines Group SA (LSE:IAG), down 2.3%.
Gold miners are still doing well, though, with Fresnillo PLC (LSE:FRES) jumping more than 5% and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) gaining close to 4%.
Gold is trading 4.3% higher this morning at $3,210 an ounce.
8.30am: BP shares slip on Q1 trading statement
Oil prices aside, it's not surprising that BP PLC (LSE:BP.) stock is under pressure today, down just over 2% so far.
The oil major has warned investors to expect a weaker start to the year from its natural gas trading business and a sharp rise in debt, according to early guidance for the first three months of 2025.
Ahead of Q1 results scheduled for 7 May, BP said gas production would be lower compared to the previous quarter, hit in part by previously announced asset sales in Egypt and Trinidad. The gas and low-carbon energy division is also expected to report weak trading results, although prices were broadly stable.
Brent crude averaged $75.73 a barrel in the first quarter, slightly above the $74.73 average at the end of 2024. It has fallen more than $10 since then, currently trading around $64 a barrel.
8.15am: FTSE off to a solid start
The market pundits got it right: the FTSE 100 opened higher as it continues to recover from a drubbing earlier this week on US President Donald Trump's on-again, off-again tariffs rhetoric.
The blue-chip index added 55 points, about 0.7%, to 7,968.04 in opening trades.
Again, gold miners Fresnillo PLC (LSE:FRES) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) are among the index's top gainers this morning, both rising more than 2%. Games Workshop Group PLC (LSE:GAW), HSBC Holdings PLC (LSE:HSBA) and Airtel Africa PLC (LSE:AAF) are also making decent gains.
On the loser board, Schroders PLC (LSE:SDR), Croda International PLC (LSE:CRDA) and oil majors BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) are losing ground.
7.55am: Growth beats forecasts but will it last?
The UK economy grew 0.5% in February, bouncing back from a small dip in January and beating forecasts, according to the Office for National Statistics (ONS).
All sectors saw gains, with manufacturing and construction doing especially well, the ONS said.
But with rising bills and taxes hitting this month, the boost might not last. And the impact from Donald Trump’s tariff war is yet to come
7.30am: Diageo thirsty for more funds
Diageo PLC (LSE:DGE) has gone to market with a $1.5 billion bond deal, splitting it evenly across two maturities.
The deal includes $750 million in 5.125% notes due in 2030 and another $750 million in 5.625% notes due in 2035. The bonds are being issued by Diageo Investment Corporation and come with a full guarantee from its parent.
The transaction is expected to settle on 15 April 2025. The beverages giant plans to use the funds for general corporate purposes.
7.15am: FTSE recovery looks to continue
The FTSE 100 is expected to rise at the open on Friday, building on Thursday's recovery after US President Donald Trump backtracked on the majority of his tariff increases with a 90-day pause.
London's blue-chip index has been called up 85 points on the futures market.
Yesterday, the FTSE gained 234 points, or 3.04%, to 7,913.25, recouping Wednesday's, while other European markets also made solid gains. The CAC 40 in Paris jumped 3.8% while the DAX in Frankfurt gained 4.5%.
Wall Street didn't join in though. US stocks tumbled on Thursday, sharply reversing the previous session’s historic rally as investors reassessed the economic outlook following Trump’s temporary suspension of reciprocal tariffs.
The Dow Jones fell 1,015 points, or 2.5%, to close at 39,594, the S&P 500 dropped 189 points, or 3.5%, to finish at 5,268, and the Nasdaq shed 738 points, or 4.3%, settling at 16,387.
Asian markets are mixed this morning. Hong Kong's Hang Seng is up 1.7% while the Shanghai Composite is up 0.6%. But Japan's Nikkei 225 is 3.4% off the pace.