London midday: Stocks up on China-US trade deal
By Michele Maatouk
Date: Monday 12 May 2025
(Sharecast News) - London stocks were still firmer by midday on Monday after the US and China agreed a temporary deal to cut tariffs.
The FTSE 100 was up 0.5% at 8,598.83 after the US and China agreed to significantly lower tariffs following a key agreement struck in Geneva over the weekend.
The world's two largest economies will now cut levies for the next 90 days. Washington will reduce tariffs on Chinese goods to 30% from 145%, while Beijing will lower duties to 10% from 125%.
Speaking at a press conference in Geneva, US Treasury secretary Scott Bessent said: "We want more balanced trade, and I think both sides are committed to achieving that.
"Neither side wants to a decoupling."
He added that the two sides now had a "mechanism for continued talks".
In Beijing, China's state broadcaster CCTV called the talks "candid, in-depth and constructive". Official media reports also noted that further discussions "on issues of mutual concern" were now expected.
Russ Mould, investment director at AJ Bell, said: "Markets have welcomed the tentative US-China trade agreement with open arms.
"While the trade spat has only been dialled back for 90 days, it's a major breakthrough as far as investors are concerned. The fact the two countries were talking was already a major win given they've been at each other's throats during the first and second Trump presidential terms.
"Some people thought the best-case outcome from the weekend's discussions would be an agreement to simply keep talks going. Therefore, to have reached an initial deal so quickly and one that rolls back tariffs by a large amount is a pleasant surprise.
"The UK-US trade deal last week made it perfectly clear that Trump wasn't going to get rid of tariffs completely. If one of its greatest allies is forced to still have a 10% base tariff, there is no way that tariffs on China would have disappeared completely upon a trade deal.
"Lowering tariffs on Chinese goods from 145% to 30% is a big deal and one that significantly lessens the blow to the Asian economy. As ever, it's clear that these deals aren't even sided. China is cutting duties on US imports from 125% to 10%. That's the same percentage point reduction as on the other side of the coin, but the US is still subject to lower tariffs.
"The next 90 days are going to be crucial in determining the longer-term tariff levels between the two countries. It would only take China upsetting Trump once for him to rip up the 90-day deal and revert back to sky-high tariffs. China won't want to come across as weak in any discussion and is certainly not a push-over, yet it will be cognisant of the situation's fragility.
"Trump has shown he is willing to reduce the severity of the Liberation Day tariffs and that has raised hopes for other countries to secure more favourable trade deals. All this points to the potential for a less severe hit to global trade and lower fears of recession. That in turn has put investors in risk-on mode."
In equity markets, heavily-weighted miners were among the top performers, with Glencore, Anglo American, Antofagasta and Rio all higher.
4imprint was the standout gainer on the FTSE 250, having warned in March that tariffs could dent sales this year.
Shares in meat producer Cranswick plunged after Britain's Big Four supermarkets all suspended supplies from its Northmoor Farm in Lincolnshire following reports of animal abuse.
Secret recordings obtained by the Mail on Sunday showed workers at the site engaging in inhumane practices, including piglet 'thumping' - a criminal offence whereby runts of the litter or sick piglets are killed by being violently hit against floors and walls. Botching killings of sows were also filmed, along with a number of other unnecessary acts that put pigs under distress and considerable pain.
Cranswick is the largest meat supplier to grocers in the UK, and Tesco, Sainsbury's, Morrisons and Asda have all announced that they pulled supplies immediately following the revelations.
Victrex was also weaker after interim results, while AstraZeneca and Hikma Pharmaceuticals both fell after Trump said he would sign an executive order to cut drug prices.
Market Movers
FTSE 100 (UKX) 8,598.83 0.51%
FTSE 250 (MCX) 20,760.49 1.25%
techMARK (TASX) 4,672.44 0.48%
FTSE 100 - Risers
Smurfit Westrock (DI) (SWR) 3,395.00p 8.47%
Antofagasta (ANTO) 1,867.00p 7.70%
Anglo American (AAL) 2,193.00p 7.05%
Standard Chartered (STAN) 1,140.00p 6.79%
Glencore (GLEN) 268.95p 6.60%
Intermediate Capital Group (ICG) 2,074.00p 5.71%
Ashtead Group (AHT) 4,333.00p 5.48%
CRH (CDI) (CRH) 7,472.00p 5.33%
International Consolidated Airlines Group SA (CDI) (IAG) 313.00p 5.32%
Spirax Group (SPX) 6,485.00p 5.28%
FTSE 100 - Fallers
Fresnillo (FRES) 1,017.00p -4.15%
Marks & Spencer Group (MKS) 345.70p -3.44%
AstraZeneca (AZN) 9,900.00p -3.32%
United Utilities Group (UU.) 1,075.50p -3.20%
National Grid (NG.) 1,020.50p -3.18%
Severn Trent (SVT) 2,600.00p -3.09%
Tesco (TSCO) 367.90p -2.59%
Rightmove (RMV) 708.20p -2.48%
Unite Group (UTG) 816.50p -2.45%
Hikma Pharmaceuticals (HIK) 1,956.00p -2.40%
FTSE 250 - Risers
4Imprint Group (FOUR) 3,565.00p 14.26%
Carnival (CCL) 1,500.50p 8.69%
Ferrexpo (FXPO) 67.30p 8.37%
Burberry Group (BRBY) 828.00p 7.70%
Wizz Air Holdings (WIZZ) 1,733.00p 7.64%
Allianz Technology Trust (ATT) 399.50p 6.68%
Diversified Energy Company (DEC) 1,052.00p 6.42%
RS Group (RS1) 572.00p 6.22%
RHI Magnesita N.V. (DI) (RHIM) 3,200.00p 6.14%
Raspberry PI Holdings (RPI) 496.60p 6.11%
FTSE 250 - Fallers
Cranswick (CWK) 4,955.00p -7.56%
Victrex plc (VCT) 858.00p -5.19%
Hochschild Mining (HOC) 277.40p -4.54%
Endeavour Mining (EDV) 2,160.00p -4.34%
Pennon Group (PNN) 488.80p -2.92%
Chemring Group (CHG) 408.00p -2.63%
Hilton Food Group (HFG) 872.00p -2.57%
QinetiQ Group (QQ.) 416.60p -2.30%
Primary Health Properties (PHP) 98.85p -2.13%
Tate & Lyle (TATE) 574.50p -2.05%
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