London open: Stocks slump amid Trump tariff threats
By Michele Maatouk
Date: Monday 31 Mar 2025
(Sharecast News) - London stocks fell sharply in early trade on Monday as Donald Trump threatened to impose reciprocal tariffs on "all countries".
At 0845 BST, the FTSE 100 was down 0.8% at 8,587.16.
Speaking to reporters on board Air Force One on Sunday, the US President said that his tariff announcement on 2 April would "start with all countries".
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The last day of March is spring-loaded with uncertainty on financial markets. Unease about the effect of Trump's tariffs has been amplified, causing sharp moves at the start of the week.
"London-listed stocks will not be immune to the tariff fall out, with the FTSE 100 set for a difficult start to the week as investors brace for the debilitating effect of widespread tariffs.
"There have been steep falls on indices in Asia as hopes for a more targeted set of fresh duties have evaporated. The President's comments over the weekend appeared to indicate that blanket new tariffs would be unleashed on Wednesday, a day he's dubbed 'Liberation' day but one which is likely to ensnare many more countries in his punishing trade policies.
"While the implications of his comments are still far from clear, he appears determined to target countries which are competitive in a whole range of sectors, to try spark a revival of home-grown industries.
"But building new manufacturing bases will take years, and much higher costs in the meantime, look set to raise prices and depress economic activity. Concerns about the depth of the tariff plan and the knock-on effects of a potential recession in the world's largest economy is sparking this fresh round of nervousness, following Friday's losses on Wall Street."
In equity markets, heavily-weighted miners were under the cosh, with Glencore, Anglo American, Antofagasta and Rio Tinto among the worst performers.
Associated British Foods was the biggest faller on the FTSE 100, however, as it said that Paul Marchant has resigned as Primark chief executive with immediate effect after a woman made a complaint about his behaviour "in a social environment".
Group finance director Eoin Tonge will act as Primark CEO on an interim basis. Marchant's departure follows an investigation, initiated by ABF and carried out by external lawyers. It was not clear whether the complaint was made by a staff member or third party.
Pets at Home tumbled as it said profits were set to fall next year as an uncertain economic backdrop and increased costs take their toll.
In an update for the year to 27 March, the company said group underlying pre-tax profit is expected to be £133m, in line with previous guidance. For FY26, however, underlying pre-tax profit is expected to decline to between £115m and £125m. Broker Shore Capital said consensus expectations were for growth to £142m.
Wood Group tanked after saying it was likely to suspend trading of its shares from the end of April as it needs more time to get its results out. The company said a review identified "material weaknesses and failures" in its "financial culture within the projects business unit and engagement between group finance and projects".
It also said it expects "material" prior year P&L and balance sheet adjustments for FY22, FY23 and HY24.
On the upside, defensive stocks rallied, with utilities such as Severn Trent, United Utilities and National Grid all higher, and tobacco firms Imperial Brands and British American Tobacco also in the black.
Aston Martin surged to the top of the FTSE 250 as the luxury car maker said that chairman Lawrence Stroll's Yew Tree Consortium would plough another £52.5m into the company, lifting its stake to around 33%.
Market Movers
FTSE 100 (UKX) 8,587.16 -0.83%
FTSE 250 (MCX) 19,606.54 -1.30%
techMARK (TASX) 4,617.89 -0.88%
FTSE 100 - Risers
Imperial Brands (IMB) 2,863.00p 1.31%
Severn Trent (SVT) 2,519.00p 0.92%
British American Tobacco (BATS) 3,145.00p 0.67%
London Stock Exchange Group (LSEG) 11,595.00p 0.56%
SSE (SSE) 1,611.50p 0.34%
Unilever (ULVR) 4,602.00p 0.33%
Haleon (HLN) 391.10p 0.31%
United Utilities Group (UU.) 1,007.00p 0.25%
National Grid (NG.) 1,011.50p 0.20%
Relx plc (REL) 3,894.00p 0.18%
FTSE 100 - Fallers
Associated British Foods (ABF) 1,870.50p -3.61%
Glencore (GLEN) 283.85p -2.97%
Anglo American (AAL) 2,188.00p -2.91%
International Consolidated Airlines Group SA (CDI) (IAG) 271.20p -2.90%
Antofagasta (ANTO) 1,682.00p -2.89%
St James's Place (STJ) 982.50p -2.82%
Schroders (SDR) 348.80p -2.62%
Rio Tinto (RIO) 4,595.50p -2.56%
Lloyds Banking Group (LLOY) 71.56p -2.51%
Smurfit Westrock (DI) (SWR) 3,378.00p -2.37%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 71.55p 9.66%
Moonpig Group (MOON) 211.50p 2.42%
W.A.G Payment Solutions (WPS) 60.00p 1.35%
Keller Group (KLR) 1,394.00p 1.01%
Bluefield Solar Income Fund Limited (BSIF) 89.80p 0.90%
Energean (ENOG) 876.00p 0.69%
TI Fluid Systems (TIFS) 199.00p 0.61%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 427.00p 0.59%
Harworth Group (HWG) 174.50p 0.58%
PRS Reit (The) (PRSR) 115.20p 0.52%
FTSE 250 - Fallers
Pets at Home Group (PETS) 202.60p -14.30%
Close Brothers Group (CBG) 288.60p -3.74%
IP Group (IPO) 41.30p -3.73%
Paragon Banking Group (PAG) 744.00p -3.69%
THG (THG) 32.44p -3.57%
AO World (AO.) 95.80p -3.23%
Pennon Group (PNN) 440.00p -2.83%
Baillie Gifford Japan Trust (BGFD) 729.00p -2.80%
Kainos Group (KNOS) 673.00p -2.75%
Currys (CURY) 86.80p -2.75%
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