London open: Stocks edge down amid tariff confusion; Shell slides
By Michele Maatouk
Date: Monday 07 Jul 2025
(Sharecast News) - London stocks edged down in early trade on Monday as investors mulled US tariff developments and a possible extension to the deadline.
At 0830 BST, the FTSE 100 was down 0.2% at 8,806.74, after US President Donald Trump threatened to impose a new 10% tariff on any country that aligns itself with the "anti-American" BRICS group.
He wrote on his Truth Social site: "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!"
Richard Hunter, head of markets at Interactive Investor, said: "Tariff threats look likely to take centre stage yet again this week, following further developments over the weekend.
"US markets were strong last week, with the S&P500 and Nasdaq hitting new record highs on Thursday before being closed on Friday for Independence Day. Non-farm payrolls breezed past expectations, further vindicating the Federal Reserve's current policy of keeping its powder dry, while there was equal optimism that the eventual tariff levels would be lighter than had been feared after 'Liberation Day' in April.
"Over the weekend, however, the waters were muddied once more. Positively, the tariff deadline was extended further to 1 August from the previous 9 July, although the accompanying rhetoric threatened to unsettle investors. Additional tariffs and rates which could 'boomerang back' to the previously punitive levels were discussed, leaving investors bewildered and uncertain for the umpteenth time this year."
On home shores, the latest data from Halifax showed that house prices were flat on the month in June, following a 0.3% dip in May.
On the year, house prices were up 2.5% last month, down from 2.6% growth in May.
The average price of a property stood at £296,665 in June, down from £296,782 the month before.
Amanda Bryden, head of Mortgages at Halifax, said: "The market's resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That's being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.
"Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we've already helped an additional 3,000 buyers - including more than 1,000 first-time buyers - access a mortgage they wouldn't have qualified for before.
"Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it's still above target, and there are signs the jobs market may be softening.
"But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year."
In equity markets, Shell was the biggest loser on the FTSE 100 as the oil giant said second-quarter gas and oil results would be significantly lower than the previous quarter due to recent volatility. BP was also in the red.
Plus500 ticked up as it posted a 12% jump in second-quarter EBITDA to $91.3m.
Hospitality group SSP edged higher after saying it has opened public bidding for the IPO of its joint-owned Indian operations in a proposed stock market listing in Mumbai that could be worth up to £1.23bn. SSP, which operates convenience food stores and restaurants in travel gateways across 40 countries, plans to list the Travel Food Services joint venture with K Hospitality Corp on July 14.
In broker note action, Weir Group was boosted by an upgrade to 'buy' at Citi.
Currys slumped, however, after a downgrade to 'sector perform' from 'outperform' at RBC Capital Markets, which said it was time to take profits after a strong run.
Market Movers
FTSE 100 (UKX) 8,806.74 -0.18%
FTSE 250 (MCX) 21,563.14 0.03%
techMARK (TASX) 5,108.66 -0.09%
FTSE 100 - Risers
Standard Chartered (STAN) 1,225.00p 1.49%
Weir Group (WEIR) 2,532.00p 1.28%
Airtel Africa (AAF) 180.10p 1.07%
easyJet (EZJ) 527.40p 0.88%
Flutter Entertainment (DI) (FLTR) 20,340.00p 0.84%
Smurfit Westrock (DI) (SWR) 3,430.00p 0.79%
Admiral Group (ADM) 3,374.00p 0.78%
Coca-Cola HBC AG (CDI) (CCH) 4,062.00p 0.74%
Barclays (BARC) 332.95p 0.74%
British American Tobacco (BATS) 3,568.00p 0.71%
FTSE 100 - Fallers
Shell (SHEL) 2,561.50p -2.53%
BP (BP.) 373.05p -1.63%
Glencore (GLEN) 299.00p -1.27%
Mondi (MNDI) 1,186.50p -1.04%
BAE Systems (BA.) 1,863.50p -0.85%
Anglo American (AAL) 2,185.00p -0.77%
United Utilities Group (UU.) 1,109.50p -0.72%
JD Sports Fashion (JD.) 89.40p -0.71%
Spirax Group (SPX) 6,130.00p -0.65%
Severn Trent (SVT) 2,673.00p -0.63%
FTSE 250 - Risers
RHI Magnesita N.V. (DI) (RHIM) 3,100.00p 2.82%
SDCL Efficiency Income Trust (SEIT) 57.50p 2.68%
Genuit Group (GEN) 394.00p 2.60%
Alpha Group International (ALPH) 3,350.00p 1.82%
Pagegroup (PAGE) 268.00p 1.59%
AO World (AO.) 98.30p 1.34%
Energean (ENOG) 915.50p 1.33%
Hammerson (HMSO) 297.60p 1.29%
Fidelity Special Values (FSV) 370.00p 1.23%
Me Group International (MEGP) 226.50p 1.12%
FTSE 250 - Fallers
Currys (CURY) 116.00p -6.68%
Grafton Group Ut (CDI) (GFTU) 968.40p -2.62%
Ocado Group (OCDO) 239.10p -1.48%
Diversified Energy Company (DEC) 1,039.00p -1.33%
Watches of Switzerland Group (WOSG) 372.20p -1.22%
Greggs (GRG) 1,702.00p -1.16%
Moonpig Group (MOON) 218.50p -1.13%
Edinburgh Worldwide Inv Trust (EWI) 175.40p -1.13%
Harbour Energy (HBR) 197.70p -1.10%
Baltic Classifieds Group (BCG) 324.00p -1.07%
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