London pre-open: Big gains expected as trade tensions ease
By Benjamin Chiou
Date: Wednesday 23 Apr 2025
(Sharecast News) - UK stocks are expected to jump in early deals on Wednesday, tracking strong gains on Wall Street and Asia, as fears about the economic fallout from the trade war begin to ease.
Futures on the FTSE 100 are showing gains of more than 100 points (+1.2%) from Tuesday's close of 8,328.60 - its highest finish since 3 April, the day after Donald Trump's so-called 'Liberation Day' when he first unveiled sweeping tariffs on America's trading partners.
Major indices across the US and Asia put in gains of 2% or more on Tuesday as traders grew optimistic that US-China trade tensions could ease soon.
Treasury Secretary Scott Bessent said there "will be a de-escalation" in the White House's trade war with China. "No one thinks the current status quo is sustainable," he said. Bessent said that while negotiations had not yet begun, a deal was still with Beijing was still possible.
"While there's no grand peace accord on the table, the tone has shifted just enough to throw cold water on the Axis vs. Allies 'Trade War 2.0' narrative that had been gaining serious traction," said Stephen Innes, managing partner at SPI Asset Management.
After a quiet day for economic data, the calendar will pick up on Wednesday, with UK public sector borrowing figures scheduled, along with a host of purchasing managers' indices (PMIs) across the eurozone, UK and US.
In UK company news, THG said it had received and rejected a wholly "unsolicited, largely unfunded, highly conditional and non-binding" proposal by AIM-listed acquisition vehicle Selkirk to buy its nutrition brand Myprotein. The cash and share offer valued Myprotein at £400m - £600m on a cash-free, debt-free basis, THG said on Wednesday. "The board considered that the proposal fundamentally undervalued Myprotein and its prospects, and in addition carried significant execution complexity and risks, in particular the ability of Selkirk to raise sufficient funding," it added.
Reckitt Benckiser reported 3.1% like-for-like net revenue growth in the first quarter on Wednesday, driven by strong performances in germ protection and intimate wellness, especially in emerging markets where revenue rose 10.7%. The FTSE 100 consumer products giant said that while Europe and North America saw slight revenue declines due to prior-year comparisons and retailer destocking, both regions achieved market share gains supported by new product innovations. It maintained its full-year outlook of 2% to 4% group revenue growth and continued progressing on strategic initiatives, including the planned separation of 'essential home' and the rollout of its 'fuel for growth' and GenAI programmes.
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