London midday: FTSE extends gains as investors eye US inflation
By Michele Maatouk
Date: Wednesday 12 Mar 2025
(Sharecast News) - London stocks had extended gains by midday on Wednesday, recovering from heavy losses in the previous session as Trump's tariff chaos rumbled on, and as investors eyed the latest US inflation reading.
The FTSE 100 was up 0.7% at 8,555.99.
Overnight, US President Trump's 25% tariffs on steel and aluminium came into effect globally. The European Union responded by saying that it would impose counter tariffs on €26bn of US goods starting next month.
Meanwhile, Trump rowed back on his decision to double US tariffs on Canadian steel and aluminium imports to 50%, just hours after making the announcement. This came after the province of Ontario suspended new charges of 25% on electricity that it sends to some northern states in the US.
US tariffs of 25% will still take effect from 12 March, however.
The UK has not followed with retaliatory tariffs but said it was reserving the right to retaliate, with the Business Secretary saying that "all options" are on the table.
Investors were also mulling news that Ukraine has agreed to a US-proposed 30-day ceasefire with Russia.
Looking ahead to the rest of the day, all eyes will be on the latest US inflation reading, with the consumer price index for February due at 1230 GMT.
Russ Mould, investment director at AJ Bell, said: "The winds keep blowing in different directions on tariffs that it is impossible for markets to establish the lay of the land.
"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.
"Trump is essentially sticking with the same message: tariffs make goods imported into the US more expensive and that will drive Americans to buy more goods domestically. Critics says it's not that simple and that tariffs will ultimately raise prices for consumers and businesses in the US and hurt the economy.
"It's no wonder share prices have been bobbing up and down faster than a boat in a storm. We could be looking at one of the biggest years in a long time for corporate profit warnings. The next results season will be littered with uncertain outlook statements, and that's all down to a president who has only been in office for seven weeks.
"If that's not enough for investors to worry about, we've got inflation figures later today from the US. These will be watched closely by the market to see how the Federal Reserve might act next with interest rate decisions."
In equity markets, Hochschild Mining shone as the gold miner hailed its best financial performance for 13 years.
Hill & Smith surged as the construction and infrastructure products firm hiked its annual dividend by 14% after seeing underlying profits rise by almost a fifth in 2024.
Infrastructure construction specialist Balfour Beatty rose as it posted an 11% increase in underlying annual earnings and said it would buy back £125m in shares this year.
On the downside, financial services group Legal & General fell despite saying it will buy back £500m of shares this year after a strong financial performance in 2024, as part of plans to return more than £5bn to shareholders within three years - equal to around 40% of its market capitalisation.
Core operating profits were up 6% last year at £1.62bn, with a decline in asset management profits outweighed by growth in the retail and institutional retirement divisions.
4imprint tumbled as the direct marketer of promotional products posted a rise in full-year profits and revenues but struck a cautious note on the outlook, warning over the potential impact of US tariffs.
Market Movers
FTSE 100 (UKX) 8,555.99 0.71%
FTSE 250 (MCX) 19,933.90 0.83%
techMARK (TASX) 4,721.09 0.28%
FTSE 100 - Risers
Melrose Industries (MRO) 526.60p 8.22%
Spirax Group (SPX) 7,050.00p 4.44%
CRH (CDI) (CRH) 7,456.00p 4.02%
Informa (INF) 771.20p 3.24%
Fresnillo (FRES) 880.00p 3.04%
NATWEST GROUP (NWG) 446.20p 3.02%
Rolls-Royce Holdings (RR.) 769.80p 3.00%
Barclays (BARC) 291.95p 2.96%
Intermediate Capital Group (ICG) 2,080.00p 2.87%
Entain (ENT) 661.00p 2.67%
FTSE 100 - Fallers
Associated British Foods (ABF) 1,856.50p -3.86%
International Consolidated Airlines Group SA (CDI) (IAG) 282.50p -3.09%
Persimmon (PSN) 1,200.00p -2.79%
Smith & Nephew (SN.) 1,116.50p -2.15%
Severn Trent (SVT) 2,440.00p -1.89%
JD Sports Fashion (JD.) 73.84p -1.89%
Legal & General Group (LGEN) 241.10p -1.55%
Sainsbury (J) (SBRY) 254.20p -1.55%
BT Group (BT.A) 153.95p -1.50%
BAE Systems (BA.) 1,552.50p -1.46%
FTSE 250 - Risers
Hochschild Mining (HOC) 213.50p 11.31%
Hill and Smith (HILS) 1,920.00p 10.73%
Ferrexpo (FXPO) 71.80p 6.06%
Genuit Group (GEN) 368.50p 5.74%
Lion Finance Group (BGEO) 5,440.00p 5.02%
TBC Bank Group (TBCG) 4,285.00p 4.64%
Coats Group (COA) 83.50p 4.24%
Balfour Beatty (BBY) 451.00p 4.01%
Just Group (JUST) 144.60p 3.88%
Indivior (INDV) 766.00p 3.44%
FTSE 250 - Fallers
4Imprint Group (FOUR) 4,260.00p -11.06%
Aston Martin Lagonda Global Holdings (AML) 79.25p -3.29%
Ocado Group (OCDO) 233.40p -2.75%
Harbour Energy (HBR) 180.40p -2.75%
Raspberry PI Holdings (RPI) 575.75p -2.17%
Pollen Street Group Limited (POLN) 730.00p -1.62%
Rotork (ROR) 329.60p -1.49%
WH Smith (SMWH) 1,066.00p -1.02%
SSP Group (SSPG) 160.50p -0.99%
Foresight Environmental Infrastructure Limited (FGEN) 70.50p -0.98%
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN