London close: Stocks rebound as Trump puts tariffs on ice
By Josh White
Date: Thursday 10 Apr 2025
(Sharecast News) - London stocks closed sharply higher on Thursday, buoyed by investor relief after US president Donald Trump announced a 90-day pause on most of his proposed retaliatory tariffs.
The FTSE 100 index surged 3.04% to end the session at 7,913.25 points, while the FTSE 250 rose 3.5% to 18,517.41 points.
In currency markets, sterling was last up 1.05% on the dollar, trading at $1.2955, while it slipped 1.27% against the euro to change hands at €1.1562.
"UK shares initially rose on Thursday, experiencing broad-based gains after US president Donald Trump announced an immediate 90-day pause on several tariffs, providing relief to investors following the recent global market downturn," said TickMill market strategy partner Patrick Munnelly.
"In a notable policy change on Wednesday, Trump lifted many significant tariffs just a day after they were imposed, offering some relief to unsettled global markets.
"Simultaneously, he escalated the trade dispute with China by raising tariffs on Chinese goods to 145% from 104%, which had only begun on Wednesday."
Munnelly noted that in response, the European Union said on Thursday that it would pause its initial counteractions against Trump's tariffs for 90 days.
"Nevertheless, Trump's tariff reversal is not comprehensive, as the 10% blanket duty on most US imports remains in place, according to the White House.
"Existing tariffs on automobiles, steel, and aluminum also remain unchanged.
"A sharp selloff in US Treasury bonds on Wednesday, which reignited concerns about the fragility of the world's largest bond market, showed signs of easing."
British 30-year government bond yields also retreated sharply on Thursday, Patrick Munnelly said, as tensions in the fixed income market eased.
Markets rally as Trump hits pause button on tariffs
Global markets rallied on Thursday following a whiplash-inducing shift in US trade policy, with president Donald Trump announcing a 90-day suspension of most new reciprocal tariffs, excluding those targeting China.
The White House move ignited a sharp rebound on Wall Street, where the S&P 500 climbed 9.52% to 5,456.90 and the Nasdaq 100 soared 12.16% to 17,124.97.
Volatility retreated markedly, with the VIX index dropping 35.75% to 33.62, as investors welcomed the temporary de-escalation in trade tensions.
While a 10% base tariff remained in effect, the broader pause marked a reversal in tone, prompting swift reactions from global policymakers.
European Commission president Ursula von der Leyen confirmed that the EU would halt its planned retaliatory tariffs for 90 days, describing the pause as a chance to negotiate.
However, she warned that the bloc would proceed with countermeasures - already prepared and targeting €21bn in US goods - if talks proved unproductive.
Despite the market euphoria, analysts cautioned against complacency.
China was notably excluded from the tariff reprieve, with Washington signaling a tougher stance against its primary geopolitical rival.
Commentators described the unfolding situation as more than a tariff dispute, suggesting it marks a deeper reordering of global trade relationships.
US economic data meanwhile offered a mixed picture, with jobless claims rising slightly by 4,000 to 223,000 last week, in line with forecasts, while continuing claims dropped to 1.85 million, better than expected.
Inflation data pointed to easing price pressures, as the consumer price index fell 0.1% in March, below the anticipated 0.2% rise.
Annual headline inflation slowed to 2.4%, driven by a sharp decline in energy costs.
Core inflation also undershot expectations, with the underlying annual rate easing to 2.8%.
On home shores, the UK housing market activity weakened in March as buyer demand declined sharply.
The Royal Institution of Chartered Surveyors reported a notable drop in new buyer enquiries and a softening in price growth, attributed in part to fading urgency ahead of April's stamp duty changes.
Respondents also flagged concerns over global trade developments, suggesting that rising uncertainty could weigh further on sentiment in the months ahead.
"The expiry of the stamp duty break was always going to lead to a pause in activity in the sales market," said Simon Rubinsohn, chief economist at RICS.
"However, the latest results, and indeed the anecdotal remarks from respondents to the survey, suggest that the shift in sentiment has been aggravated by the slew of negative macro news flow over the past few weeks.
"Looking forward, the impact on the market will in no small part depend on how the economy is affected by the emerging trade war and the response of the Bank of England to the shifting environment."
Cyclical stocks jump after tariff pause, Tesco slides on profit outlook
On London's equity markets, Barclays surged 8.69% as sentiment improved across the financial sector.
Industrial turnaround specialist Melrose Industries rose 4.46%, while JD Sports Fashion added 5%.
Other economically-sensitive stocks also posted strong gains, with Trustpilot Group up 10.72%, International Workplace Group advancing 11.43%, Watches of Switzerland Group climbing 8.53%, and Bridgepoint Group gaining 10.88%.
Marks and Spencer Group managed a modest rise of 0.41%, recovering from earlier losses.
On the downside, Tesco fell 4.39% after warning that profits in the current year could be pressured by intensifying competition.
While the UK's largest grocer reported a 10.6% rise in group adjusted operating profit to £3.13bn for the year ended February, it said it now expected earnings to ease to between £2.7bn and £3bn for the upcoming financial year.
Rival J Sainsbury also declined, shedding 3.31% by the end of trading.
Elsewhere, Ruffer Investment Company dropped 2.13% amid its bearish stance on US equity markets.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 7,913.25 3.04%
FTSE 250 (MCX) 18,517.41 3.50%
techMARK (TASX) 4,286.47 3.66%
FTSE 100 - Risers
3i Group (III) 3,879.00p 7.75%
Barclays (BARC) 260.25p 7.70%
Intermediate Capital Group (ICG) 1,683.00p 7.27%
Anglo American (AAL) 1,891.20p 7.16%
Rentokil Initial (RTO) 331.80p 6.72%
Informa (INF) 682.80p 6.65%
Experian (EXPN) 3,418.00p 6.65%
Intertek Group (ITRK) 4,334.00p 6.64%
Smurfit Westrock (DI) (SWR) 3,131.00p 6.50%
JD Sports Fashion (JD.) 73.42p 6.13%
FTSE 100 - Fallers
Tesco (TSCO) 314.60p -6.15%
Sainsbury (J) (SBRY) 228.80p -2.97%
Aviva (AV.) 496.30p -0.78%
Reckitt Benckiser Group (RKT) 4,760.00p -0.77%
Croda International (CRDA) 2,623.00p -0.72%
RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 0.00%
British American Tobacco (BATS) 3,087.00p 0.23%
Marks & Spencer Group (MKS) 368.30p 0.68%
GSK (GSK) 1,275.00p 0.87%
Imperial Brands (IMB) 2,836.00p 1.14%
FTSE 250 - Risers
International Workplace Group (IWG) 167.00p 10.96%
Bridgepoint Group (Reg S) (BPT) 254.80p 10.88%
Trustpilot Group (TRST) 207.20p 10.51%
TBC Bank Group (TBCG) 4,100.00p 10.36%
Genus (GNS) 1,690.00p 9.17%
Spectris (SXS) 2,084.00p 9.17%
Watches of Switzerland Group (WOSG) 354.20p 8.45%
Hill and Smith (HILS) 1,660.00p 8.36%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 388.50p 8.07%
JTC (JTC) 830.00p 7.93%
FTSE 250 - Fallers
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 273.00p -3.02%
Harbour Energy (HBR) 153.30p -2.91%
Wizz Air Holdings (WIZZ) 1,400.00p -2.44%
Rathbones Group (RAT) 1,418.00p -2.07%
Man Group (EMG) 160.80p -1.89%
Mony Group (MONY) 183.70p -1.50%
Savills (SVS) 871.00p -1.25%
Morgan Advanced Materials (MGAM) 181.80p -0.66%
HarbourVest Global Private Equity Limited A Shs (HVPE) 2,270.00p -0.44%
B&M European Value Retail S.A. (DI) (BME) 283.90p -0.35%
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