London close: Stocks mixed as tariff concerns ramp up
By Josh White
Date: Wednesday 09 Jul 2025
(Sharecast News) - London equities ended Wednesday on a mixed note as renewed trade tensions from the US weighed on investor sentiment.
The FTSE 100 index edged up 0.15% to close at 8,867.02 points, while the FTSE 250 dipped 0.06% to 21,567.86 points.
It followed aggressive new trade threats from US president Donald Trump, who proposed steep tariffs of 50% on copper and 200% on pharmaceuticals.
In currency markets, sterling was last down 0.04% on the dollar to trade at $1.3586, while it gained 0.1% against the euro, changing hands at €1.1605.
Derren Nathan, head of equity research at Hargreaves Lansdown, said the US president's "war of words" on international trade and tariffs had increased in intensity again.
"The president also said that semiconductor tariffs will be announced soon," he said.
"But details of when, how and who remain thin on the ground."
Nathan quipped that confusion had become "the new normal", with Asian stocks showing little in the way of firm direction overnight.
"And despite the heavy weighting of pharmaceutical and mining companies on the FTSE 100, the index is expected to hold onto most of yesterday's small gains."
Copper prices surge on Trump tariff threat, BoE warns over rising global trade tensions
Copper prices surged during the day after US president Donald Trump threatened to impose a 50% tariff on the industrial metal, exceeding market expectations of a 25% duty.
Speaking before a cabinet meeting on Tuesday, Trump said, "Today we're doing copper," sparking a record 12% spike in US Comex copper futures to $5.66 per pound.
Commerce secretary Howard Lutnick later said the tariffs could be in place by late July or early August.
The announcement sent shockwaves through the copper market, with traders rushing to secure supplies ahead of potential duties.
However, London Metal Exchange prices fell on concerns that higher US tariffs could weigh on global demand.
Analysts at Citi said the move "should abruptly close the window for further significant US-bound copper shipments," possibly for the rest of the year.
MUFG's Derek Halpenny noted the lack of clarity around the specific forms of copper covered and said the tariff would hit top exporters Chile and Canada hardest, adding to inflationary risks in the US.
The copper levy is part of a broader tariff escalation by Trump, who also confirmed that duties of up to 200% on pharmaceuticals and new tariffs on semiconductors were in the pipeline.
Saxo Markets' Neil Wilson warned the copper move would have "huge implications for a range of industries, from autos to energy".
On home shores, the Bank of England warned that rising global trade tensions, driven by US tariffs, posed a significant downside risk to global growth.
In its latest Financial Stability Report, the Bank said uncertainty around future trade policy was weighing on business investment and fuelling inflation uncertainty.
Still, it said UK households and companies remained broadly resilient, with banks apparently well-positioned to absorb shocks.
The Bank also proposed easing lending restrictions to allow more mortgages with high loan-to-income ratios, arguing that the financial system could handle the increased risk.
That would lift a current cap that limits such loans to 15% of new lending.
The Office for Budget Responsibility flagged "daunting" challenges to UK public finances due to debt, demographics, defence and climate spending.
Bank governor Andrew Bailey echoed those concerns, calling them "very important structural issues."
Across the Atlantic, US mortgage applications rose 9.4% in the week ended 4 July, making for the third consecutive weekly gain and the strongest run since December, as mortgage rates fell to their lowest since April.
Applications for both refinancing and new home purchases rose 9%, according to the Mortgage Bankers Association.
In China, consumer prices rose for the first time in five months, with the CPI up 0.1% year-on-year in June, narrowly avoiding deflation.
However, producer prices plunged 3.6%, the steepest fall in nearly two years, as manufacturers slashed prices to move stock ahead of anticipated US tariffs.
Core CPI rose 0.7%, its highest since April 2024, offering a mixed picture of the recovery in domestic demand.
Housebuilders rise on CMA agreement, miners in the red
On London's equity markets, housebuilders Barratt Redrow, Berkeley Group, Persimmon and Vistry Group all rose after the Competition and Markets Authority said seven housebuilders agreed to a £100m package to support affordable housing across the UK.
The move followed a probe into pricing and buyer incentives.
In its announcement, the competition regulator said the funding would help deliver homes for low-income households and first-time buyers, easing concerns over industry practices.
Elsewhere, Genuit Group rallied 5.13% after JPMorgan upgraded the stock to 'overweight' from 'neutral'.
British American Tobacco gained 2.49% after Jefferies initiated coverage with a 'buy' rating, calling it the brokerage's top pick in the consumer staples sector.
On the downside, miners weighed on the broader market amid fresh trade tensions.
Antofagasta fell 2.89%, Anglo American lost 2.47% and Glencore slipped 0.38% following Donald Trump's threat to impose a 50% tariff on copper, raising concerns over global demand and pricing pressures.
WPP tumbled 16.32% after the advertising giant cut its full-year profit forecast.
The company blamed a slowdown in new client wins, cost pressures, and growing competition from AI-driven marketing solutions.
It said it now expected a 3% to 5% drop in core revenue and a squeeze on margins, a significant downgrade from earlier guidance.
Close Brothers Group fell 4.23% after announcing plans to scale back its premium finance business, citing rising costs and operational complexity.
Zigup - the artist formerly known as Redde Northgate - dropped 9.41% after posting a sharp decline in annual profits, though it said it remained optimistic about future growth opportunities.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,867.02 0.15%
FTSE 250 (MCX) 21,567.86 -0.06%
techMARK (TASX) 5,117.86 0.02%
FTSE 100 - Risers
British American Tobacco (BATS) 3,599.00p 2.01%
Rolls-Royce Holdings (RR.) 984.40p 1.86%
Barclays (BARC) 339.65p 1.49%
NATWEST GROUP (NWG) 497.60p 1.36%
Smith & Nephew (SN.) 1,115.00p 1.36%
IMI (IMI) 2,120.00p 1.34%
Whitbread (WTB) 2,982.00p 1.26%
St James's Place (STJ) 1,199.50p 1.22%
Barratt Redrow (BTRW) 423.50p 1.22%
Melrose Industries (MRO) 532.20p 1.22%
FTSE 100 - Fallers
WPP (WPP) 428.60p -18.76%
Antofagasta (ANTO) 1,864.00p -2.89%
Glencore (GLEN) 298.20p -2.68%
easyJet (EZJ) 525.60p -2.49%
Anglo American (AAL) 2,170.00p -2.47%
Rentokil Initial (RTO) 335.20p -2.27%
Marks & Spencer Group (MKS) 329.90p -1.79%
Fresnillo (FRES) 1,449.00p -1.36%
Prudential (PRU) 912.40p -1.28%
Pearson (PSON) 1,050.00p -1.27%
FTSE 250 - Risers
W.A.G Payment Solutions (WPS) 85.80p 6.72%
Genuit Group (GEN) 395.00p 4.36%
Genus (GNS) 2,205.00p 3.52%
Pennon Group (PNN) 494.00p 2.87%
Ashmore Group (ASHM) 166.50p 2.52%
Plus500 Ltd (DI) (PLUS) 3,238.00p 2.15%
Moonpig Group (MOON) 218.00p 2.11%
Drax Group (DRX) 708.50p 2.09%
Morgan Sindall Group (MGNS) 4,540.00p 2.02%
Coats Group (COA) 82.40p 1.73%
FTSE 250 - Fallers
Zigup (ZIG) 327.50p -9.41%
Close Brothers Group (CBG) 393.80p -4.23%
Wizz Air Holdings (WIZZ) 1,048.00p -3.94%
ITV (ITV) 79.40p -2.93%
Just Group (JUST) 125.20p -2.80%
Morgan Advanced Materials (MGAM) 218.50p -2.46%
Bodycote (BOY) 596.50p -2.45%
Burberry Group (BRBY) 1,204.00p -2.43%
B&M European Value Retail S.A. (DI) (BME) 263.30p -2.30%
NCC Group (NCC) 143.80p -2.18%
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