London close: FTSE ends flat as Trump makes more tariff threats
By Michele Maatouk
Date: Thursday 13 Mar 2025
(Sharecast News) - London stocks closed flat on Thursday as investors mulled more twists and turns in Trump's tariff saga after the US President threatened to impose a 200% tariff on the European Union's alcohol imports if the bloc does not remove its tariff on US whiskey.
The FTSE 100 ended steady at 8,542.56.
In a post on Truth Social, Trump said: "The European Union, one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% tariff on whisky.
"If this tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.
"This will be great for the wine and champagne businesses in the US."
Trump's 25% tariffs on steel and aluminium came into effect globally on Wednesday, prompting retaliatory measures from the European Union and Canada, with the UK holding back but reserving the right to retaliate.
The European Union said it would impose counter tariffs on €26bn of US goods starting next month.
As far as Canada is concerned, Trump rowed back on his decision to double US tariffs on their steel and aluminium imports to 50%, just hours after making the announcement on Tuesday. 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.
Canada responded by announcing the imposition of 25% reciprocal tariffs on nearly $30bn-worth of US imports into the country. The measures will affect around $12.6bn of US-made steel and $3bn of aluminium, as well as $14.2bn of other American goods such as computers, cast-iron products and sports equipment.
Market participants were also mulling the latest inflation data out of the US, which showed that final demand and the core producer price index surprised to the downside in February.
On home shores, industry research out earlier showed the housing market slowed in February as mounting uncertainty started to weigh on demand.
According to the latest residential property survey from the Royal Institution of Chartered Surveyors, house prices rose in February.
The house price balance was 11, indicating ongoing growth. But the rate of growth was notably less than the balances of 25 and 21 seen in December and February.
In addition, buyer demand weakened, with the new buyer enquiries balance coming in at -14, the weakest reading since November 2023. It was also a notable decline on January's balance of -1.
Agreed sales, meanwhile, fell into negative territory at -13, from 2 a month earlier, the softest return since last May.
Respondents said the market was reacting to upcoming changes to stamp duty, which will come into effect on 1 April, as well as mounting geopolitical and international economic uncertainties.
The market was forecast to continue softening in the short term, although most respondents still expect house prices to rise over the next 12 months, with a net balance of 47.
Simon Rubinson, Rics chief economist, said: "The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches.
"Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment.
"A key support for the market continues to be the increased flow of existing stock becoming available, giving buyers a greater choice of options, However, leading indicators around new build remain subdued for now."
In equity markets, telecoms firm Vodafone was the top performer on the FTSE 100.
Halma gained after saying it expects an adjusted EBIT margin modestly above 21% for the full year to March 2025, compared to prior guidance of around 21%.
Volution rallied as the engineering firm said full-year earnings were on track to beat forecasts.
IG Group advanced as the online trading and investment firm posted a rise in third-quarter revenues as it benefited from stronger market conditions and an increase in active clients.
On the downside, Entain and NatWest fell as they traded without entitlement to the dividend.
C&C Group tumbled as the Bulmers cider maker said full-year underlying operating profits would be "modestly below" target amid weaker consumer confidence and the impact of higher wages and employer taxes introduced in the Budget.
Trainline slumped as the online ticketing platform said fiscal year sales hit a record of almost £6bn and announced a new £75m share buyback, as full-year net ticket sales and revenues fell a little short of expectations.
Savills was weaker despite the real estate agency posting a large jump in annual earnings and saying that transaction volumes this year would be lifted by companies ordering staff to spend more time in the office.
Deliveroo fell as it hailed its first year of profit and positive free cash flow as it expanded its grocery and retail offering, but highlighted an "uncertain" consumer environment.
Market Movers
FTSE 100 (UKX) 8,542.56 0.02%
FTSE 250 (MCX) 19,688.57 -1.00%
techMARK (TASX) 4,725.36 0.39%
FTSE 100 - Risers
Vodafone Group (VOD) 73.28p 4.60%
Antofagasta (ANTO) 1,808.00p 2.81%
BT Group (BT.A) 156.40p 2.39%
Airtel Africa (AAF) 149.90p 2.04%
Rentokil Initial (RTO) 326.40p 2.00%
AstraZeneca (AZN) 11,882.00p 1.99%
Imperial Brands (IMB) 2,788.00p 1.86%
Reckitt Benckiser Group (RKT) 5,220.00p 1.44%
Shell (SHEL) 2,603.00p 1.34%
Halma (HLMA) 2,672.00p 1.21%
FTSE 100 - Fallers
Melrose Industries (MRO) 496.20p -4.21%
Hiscox Limited (DI) (HSX) 1,103.00p -4.00%
Croda International (CRDA) 3,076.00p -3.33%
Diploma (DPLM) 3,944.00p -3.10%
Entain (ENT) 629.00p -3.08%
CRH (CDI) (CRH) 7,342.00p -2.91%
NATWEST GROUP (NWG) 433.60p -2.80%
Beazley (BEZ) 871.50p -2.79%
Hikma Pharmaceuticals (HIK) 2,016.00p -2.70%
Coca-Cola HBC AG (CDI) (CCH) 3,388.00p -2.53%
FTSE 250 - Risers
Volution Group (FAN) 585.00p 12.72%
Ferrexpo (FXPO) 73.60p 5.14%
OSB Group (OSB) 438.60p 4.33%
Chemring Group (CHG) 396.00p 4.21%
Helios Towers (HTWS) 101.40p 3.89%
Hochschild Mining (HOC) 223.00p 3.24%
Wood Group (John) (WG.) 38.64p 2.77%
Wizz Air Holdings (WIZZ) 1,653.00p 2.67%
Baltic Classifieds Group (BCG) 305.50p 2.52%
Ithaca Energy (ITH) 133.20p 2.30%
FTSE 250 - Fallers
C&C Group (CDI) (CCR) 119.60p -19.08%
Trainline (TRN) 272.40p -13.19%
Dunelm Group (DNLM) 887.50p -9.11%
Savills (SVS) 906.00p -8.58%
Safestore Holdings (SAFE) 581.00p -5.07%
Apax Global Alpha Limited (APAX) 126.00p -4.98%
Lancashire Holdings Limited (LRE) 567.00p -4.71%
Empiric Student Property (ESP) 79.90p -4.54%
Deliveroo Class (ROO) 119.00p -4.49%
WH Smith (SMWH) 1,032.00p -4.44%
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