FTSE 100 Live: stocks start August on the back foot as new US tariffs hit

Proactive Published 01/08/2025

Share X in f @

FTSE 100 closes down 66 points at 9,066
European markets fall sharply
US imposes 35% tariff on Canadian imports
House prices rise in July

4.35pm: Tariff fears see stocks retreat

The FTSE 100 finished Friday’s session on the back foot as investors digested the latest Trump tariff developments and worse-than-expected jobs data out of the US.

The US Labor Department reported that nonfarm payrolls rose by just 73,000 last month, well below economists' expectations of 104,000. Revisions also slashed job gains from May and June by a combined 258,000.

“Given how markets had been trading this morning after the tariff news, it would have taken a very solid payroll report to avoid further losses. As it was, today’s dismal number did nothing for sentiment,” IG chief market analysts Chris Beauchamp said.

“What really drove the gloomy mood this afternoon was the substantial set of revisions to recent months data. After days spent worrying about the impact of tariffs on prices, the fear is now that hiring is poised to collapse.”

12:05pm: Markets ‘bruised’ after hectic week

“Bruising” is how XTB research director Kathleen Brooks described what has been another week in the markets in which Trump-tariffs have dominated headlines.

In London, the FTSE 100 actually hit a new record high this (we live in such head scratching times), though on Friday, the blue-chip benchmark was down 57 points or 0.63% at 9,075.

At the same time, the half year reporting season has also kept investors engaged.

“It has been a bruising week for European indices, the Eurostoxx 50 index is currently down 1.6%, and is lower by 2.25% in the past week, the Cac and the Dax index are also extending losses,” Brooks said.

“The sell-off is broad based, it is led by industrials and financial stocks. There are big losses for luxury, defense and tech stocks, along with healthcare.

“Astra Zeneca is the weakest performer on the FTSE 100 today as pharma stocks get hit by Donald Trump’s plans to slash the price of drugs for American consumers.”

She added: “The average tariff rate is 15%, although for some countries it is much higher. This could still cause a serious demand shock for the global economy, and stock markets may be subdued for some time as they digest this news.”

It comes ahead of today’s non-farm payroll report for July, which will potentially be a divisive data point for those forming political narratives about the health of the US economy.

As Donald Trump and Fed chair Jerome Powell row over the necessity for interest rate cuts, the state of America’s labor market is a key input.

10.25am: Small caps in the headlines

Valereum PLC (AQSE:VLRM) is raising £500,000 to expand VLRM Markets and its digital asset platform. Chair James Bannon and CEO Gary Cottle are each investing £200,000. Proceeds will support tech development, regulatory approvals, and crypto services. Valereum also plans a Bitcoin treasury to align its balance sheet with future growth ambitions. Read more

Blencowe Resources PLC (LSE:BRES) has signed a non-binding offtake deal with Perpetuus Advanced Materials for 19,000 tonnes of fine flake graphite from its Orom-Cross project. The five-year agreement supports entry into high-value western markets, with potential for increased volumes and UK Government funding tied to critical mineral supply chains. Read more

Orosur Mining Inc (AIM:OMI, TSX-V:OMI) shares rose nearly 6% after Newmont Corporation (NYSE: Read moreNEM, TSX:NGT, ASX:NEM, ETR:NMM) sold its 9.4% stake at C$0.19 per share to institutional investors. Chair Louis Castro thanked Newmont for its support and welcomed new backers, calling their investment a vote of confidence as the company enters a new growth phase. Read more

HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) has named Keith Spickelmier as non-executive chair, replacing David Minchin, who steps down as the company shifts into production. Minchin led the company from formation to AIM listing and funding. Spickelmier brings extensive energy sector experience and praised HeLIX’s strong position and institutional backing. Read more

Tissue Regenix Group PLC (AIM:TRX) announced the immediate retirement of CFO David Cocke, with Brandon Largent appointed interim CFO. Largent, a seasoned finance executive with private equity and public company experience, previously managed US operations finance at Tissue Regenix and will not join the board. Cocke’s departure was flagged in March. Read more

ECR Minerals PLC (AIM:ECR) announced that managing director Mike Whitlow has stepped down to pursue other business interests but will remain as a consultant. Chair Nick Tulloch praised Whitlow’s role in revitalising the company and investor relations, particularly at the Blue Mountain Project. ECR plans to bolster its management team. Read more

9.45am: August 'fun and games'

The FTSE 100 has extended its losses, now down 66 points, roughly 0.7%, at 9,066.78, with the new US tariffs on its trading partners weighing on sentiment as August gets underway.

"We’ve had a stunning run to record highs and now tariffs are back on the minds of investors and the Fed is less likely to cut in September," commented Saxo's Neil Wilson. "Stocks are down quite hard today, and European stocks are starting to look concerning. The dollar has surged and is on course for its best week in three years. Gold is back below $3,300 and oil retreated sharply to retest its 200-day line. August is always a fun time."

In Frankfurt, the Xetra DAX is down 1.5%, while the Paris CAC 50 has shed 1.7%.

"We knew 1 August was the deadline, and whilst the UK, EU and Japan had secured deals, President Trump was true to his word and set reciprocal tariffs between 10% and 41% on U.S. imports from various countries. India's exports to the U.S. face a 25% tariff, Taiwan's 20%, Switzerland’s 39%, and South Africa's 30%."

9.15am: Big movers

8.15am - Stocks sink at the open

The FTSE 100 fell sharply at the open after US President Donald Trump's announced a new tariff regime, set to take effect from 7 August. Shortly after the open, the blue chip index was down 43 points, or 0.5%, at 9,089.33.

Intertek Group PLC (LSE:ITRK) led the decliners, down over 7%, following the release of its first-half results, with AstraZeneca PLC (LSE:AZN) and Pershing Square Holdings (LSE:PSH) sliding over 2% each.

Among the gainers, Melrose Industries PLC (LSE:MRO, OTC:MLSPF) jumped more than 6% after it announced half-year results. Pearson PLC (LSE:PSON) rose 4% and International Consolidated Airlines Group SA (LSE:IAG) gained close to 2% after it published a strong set of half-year figures.

7.55am - House prices edge higher

UK house prices rose 2.4% annually in July, with a 0.6% monthly increase, according to Nationwide. Affordability is improving, with the price-to-earnings ratio at its lowest in over a decade at 5.75.

“While the price of a typical UK home is around 5.75 times average income, this ratio is... the lowest this ratio has been for over a decade,” said Nationwide’s Robert Gardner.

Mortgage approvals remain steady, and five-year fixed rates have eased from 2023 highs. With strong income growth and low unemployment, the housing market is expected to strengthen gradually.

7.45am: Canada hits back

Canada's Prime Minister Mark Carney has voiced disappointment after President Trump raised tariffs on Canadian goods to 35% from 25%.

While goods under the US-Mexico-Canada trade agreement remain exempt, key sectors like steel, aluminium, and autos will be hit. Carney reaffirmed Canada’s commitment to the trade pact but vowed to protect jobs, boost competitiveness, and diversify exports.

In a post on Bluesky, he said: “The Canadian government will act to protect Canadian jobs... and diversify our export markets.”

My statement on Canada-U.S. trade:

[image or embed]

— Mark Carney (@mark-carney.bsky.social) 1 August 2025 at 05:28

7.15am: FTSE 100 set to fall at the open

The FTSE 100 has been called lower at the open after US President Donald Trump signed an executive order outlining a new set of tariffs on the eve of the August 1 deadline, including a 35% tariff on Canadian goods, up from 25%.

Ahead of the market open, futures for the London benchmark are indicating an initial loss of around 36 points, or 0.4%.

The blue chip index closed down 4 points at 9,132 on Thursday as tariff concerns overshadowed strong earnings from tech giants in the US.

"With just a few hours to go before the August 1 deadline, last night President Trump signed an executive order outlining a new set of tariffs, including a 10% global minimum and duties of 15% or higher for countries with trade surpluses with the US," commented Deutsche Bank's Jim Reid. "Some of the higher rates that had not previously been confirmed included 39% on Switzerland and 20% on Taiwan. The tariffs are due to take effect after August 7 which, while being a delay for technical implementation, could leave open the possibility of more countries agreeing deals in the next week. "

US stocks also slipped on Thursday as investors braced for the tariff deadline and awaited fresh earnings from tech heavyweights, though that didn’t stop markets from wrapping up another winning month.

The Dow Jones Industrial Average fell 0.7%, the S&P 500 lost 0.4% and the Nasdaq Composite ended virtually flat, dipping just 7 points.

Asian markets are also under pressure this morning, with Japan's Nikkei down 0.6%, Hong Kong's Hang Seng down 0.5% and Shanghai's SSE Composite Is 0.3% lower.