London midday: FTSE falls further as investors eye Trump announcement
By Michele Maatouk
Date: Wednesday 02 Apr 2025
(Sharecast News) - London stocks had fallen further by midday on Wednesday as investors eyed US President Donald Trump's announcement on reciprocal tariffs.
The FTSE 100 was down 0.6% at 8,581.93.
Russ Mould, investment director at AJ Bell, said: "Liberation Day has arrived and investors are bracing themselves for a barrage of bad news.
"European markets were down ahead of the announcement as investors fear widespread tariffs will be announced. Worst case scenario, higher tariffs could dampen economic growth.
"From the recipients' perspective, there is nothing liberating about tariffs, even if they retaliate with their own levies on imported US products and services.
"Donald Trump has moved fast since returning to the White House and Liberation Day looks like his way of getting all the bad news out in one go, rather than doing tariffs piecemeal. In doing so, it means trade partners are lined up together as the starting gun is fired on negotiations.
"This is all about doing deals. Trump wants companies to invest in factories and jobs in the US, to supply America with strategic items such as natural resources, and to make it easier for US firms to do business overseas. His phone could be ringing off the hook over the next few days and weeks as country leaders try to work out a middle ground.
"While the EU has indicated it will fight back hard, the UK has taken a more considered approach in hope that a long-standing strong relationship with the US will help it avoid the worst of any tariff pain.
"Keir Starmer has focused a lot of his energy on keeping the conversation going with Trump. If that approach doesn't prove fruitful, we could see heightened volatility among shares in companies linked to the pharma, food and drink, aviation, chemical and automotive sectors - the biggest sources of British exports to the US."
In equity markets, WPP was the standout performer on the top-flight index, having slumped on Tuesday after Bank of America Merrill Lynch said it expects first-quarter results on 25 April to show a further deterioration in like-for-like revenue growth.
Distribution and outsourcing firm Bunzl ticked higher after an upgrade to 'buy' at Stifel.
Bakkavor surged as it reached an agreement in principle to ben take over by rival convenience food group Greencore in a deal worth £1.2bn after two previous approaches were rejected.
Bakkavor shareholders would be entitled to receive 85p in cash and 0.604 Greencore shares along with the Bakkavor 2024 final dividend of 4.8p a share. Greencore shareholders would own approximately 56% and Bakkavor investors 44% of the combined group.
Chemring rallied after saying that its Roke business has won a "strategically important" UK Ministry of Defence missile defence contract valued at £251m over six years.
Market Movers
FTSE 100 (UKX) 8,581.93 -0.61%
FTSE 250 (MCX) 19,479.34 -0.57%
techMARK (TASX) 4,584.37 -1.00%
FTSE 100 - Risers
WPP (WPP) 570.80p 1.89%
Flutter Entertainment (DI) (FLTR) 17,280.00p 1.53%
Diageo (DGE) 2,050.00p 1.33%
Bunzl (BNZL) 2,978.00p 1.29%
Smurfit Westrock (DI) (SWR) 3,507.00p 0.80%
BP (BP.) 436.10p 0.72%
Marks & Spencer Group (MKS) 359.00p 0.70%
Next (NXT) 11,180.00p 0.68%
Associated British Foods (ABF) 1,940.00p 0.67%
International Consolidated Airlines Group SA (CDI) (IAG) 259.00p 0.62%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 753.80p -3.28%
Persimmon (PSN) 1,169.50p -3.23%
Taylor Wimpey (TW.) 105.15p -2.91%
Fresnillo (FRES) 926.50p -2.78%
GSK (GSK) 1,430.00p -2.65%
Melrose Industries (MRO) 470.80p -2.40%
Beazley (BEZ) 909.50p -2.31%
M&G (MNG) 194.60p -2.26%
Berkeley Group Holdings (The) (BKG) 3,544.00p -2.21%
St James's Place (STJ) 944.60p -2.17%
FTSE 250 - Risers
W.A.G Payment Solutions (WPS) 65.80p 8.94%
Raspberry PI Holdings (RPI) 501.50p 6.52%
Bakkavor Group (BAKK) 189.20p 6.41%
Pets at Home Group (PETS) 222.20p 2.97%
Chemring Group (CHG) 390.00p 2.90%
Ocado Group (OCDO) 287.70p 2.90%
Petershill Partners (PHLL) 235.50p 2.61%
Deliveroo Class (ROO) 125.90p 2.03%
Wetherspoon (J.D.) (JDW) 567.00p 1.16%
The Renewables Infrastructure Group Limited (TRIG) 75.80p 1.07%
FTSE 250 - Fallers
Hochschild Mining (HOC) 261.20p -5.02%
Vistry Group (VTY) 563.40p -3.20%
Abrdn (ABDN) 150.50p -3.09%
Genuit Group (GEN) 350.50p -3.04%
Bellway (BWY) 2,300.00p -3.04%
Vesuvius (VSVS) 386.40p -2.67%
Volution Group (FAN) 516.00p -2.64%
QinetiQ Group (QQ.) 386.80p -2.62%
Alpha Group International (ALPH) 2,510.00p -2.52%
Ferrexpo (FXPO) 54.30p -2.51%
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