London pre-open: Stocks to fall as Trump tariffs kick in
By Michele Maatouk
Date: Tuesday 04 Mar 2025
(Sharecast News) - London stocks were set to fall at the open on Tuesday following heavy losses on Wall Street, as US President Donald Trump's tariffs on China, Canada and Mexico kicked in.
The FTSE 100 was called to open around 45 points lower.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Today marks a turning point in Donald Trump's tariff policy. It is the day the tariff threat will materialise - unless there is a surprise U-turn - and hammer hopes that the aggressive tariff threats were not just a negotiation tactic.
"As a result, the Canadian and the Mexican imports will be hit by 25% levies, and the Chinese imports will be subject to 20% tariff. In addition, the US will impose tariffs on agricultural product imports starting from April 2nd and tariffs as highs as 25% are expected to hit the European imports in the foreseeable future."
Both China and Canada have already announced they will impose retaliatory tariffs on the US.
In UK corporate news, annual sales at bakery chain Greggs passed £2bn for the first time helping to serve up an 8.3% rise in pre-tax profit to £204m.
The company said total sales were up 11.3% in the 12 months to 28 December, with like-for-like sales in company-managed shops up 5.5% year-on-year.
LFL sales in company-managed shops increased by 1.7% year-on-year in the first nine weeks of 2025. Challenging weather conditions in January followed by improved trading in February, Greggs added.
Equipment rental firm Ashtead said it expects full-year results to rise in line with previous guidance, after a record performance over the first nine months of the year, with rental revenues up 5% and adjusted EBITDA up 3%.
Rental revenues are expected to rise by 3-5% for the year ending 31 March, though rental revenue growth in Canada - which accounts for just under 9% of sales - is now expected to be 9-13%, down from earlier estimates of 15-19%.
Fresnillo posted a big jump in full-year sales and operating profits. Revenues rose by 26.9% to $3.64bn and its earnings before interest, taxes, depreciation and amortisation by more than double to reach $1.55bn.
Thanks to that "strong" performance, the precious metals miner announced a special dividend of $308m, or 41.8 US cents per share, together with a final dividend of $192.3m or 26.1 US cents. Net cash at period end stood at $458.3m.
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