London Open: Stocks Fall on Trump Auto Tariffs; Next Bucks Trend

Stocks

Summary:

London stocks fell as Trump’s 25% auto tariff hit markets, while Next surged after raising its sales outlook despite consumer caution.

London stocks fell in early trade on Thursday, taking their cue from a downbeat session on Wall Street after Donald Trump announced a new 25% tariff on all imported cars and car parts.

At 0830 GMT, the FTSE 100 was down 0.6% at 8,635.01.

Speaking at the White House on Wednesday, Trump said: "Frankly, friend has been oftentimes much worse than foe. And what we’re going to be doing is a 25% tariff on all cars that are not made in the United States.

"If they’re made in the United States, it’s absolutely no tariff."

Trump also warned the European Union and Canada not to work together "to do economic harm to the US", threatening them with "large-scale tariffs, far larger than currently planned".

On his Truth Social platform, the US President said such tariffs "will be placed on them both in order to protect the best friend that each of those two countries has ever had".

In equity markets, M&G, Schroders, Segro, Taylor Wimpey, Melrose Industries, Aberdeen and OSB Group all fell as they traded without entitlement to the dividend.

Luxury car maker Aston Martin was under the cosh on news of Trump’s latest tariffs.

AJ Bell lost ground after saying it has agreed to sell its Platinum SIPP and SSAS business - AJ Bell Platinum - to InvestAcc for up to £25m.

On the upside, Next surged to the top of the FTSE 100 as the retail giant boosted its sales outlook following a strong start to the year, but warned that consumer confidence was set to deteriorate as the year progressed.

The fashion and home retailer said full-price sales in the first eight weeks of the year had been ahead of expectations.

As a result, it has hiked its first-half forecast to 6.5%, having previously guided for sales growth of 3.5%.

However, the retailer - which is known for its cautious outlook - did not upgrade its second-half guidance. Instead it was kept at 3.5%, with Next citing strong comparatives and potentially weakening conditions.

Chris Beauchamp, chief market analyst at IG, said: "In uncertain times, you can usually rely on Next to deliver good news. The retail giant duly came up with the goods, engaging in the traditional upgrade to its profit forecast for the year and providing a very healthy 10% rise in pre-tax profit.

"Its growth in new platforms outside the UK and expansion into new products provides investors with hope that this steady performer can continue to deliver in a similar vein."

Marks & Spencer and Primark owner AB Foods also gained.

Source: Sharecast

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London Open: Stocks Fall on Trump Auto Tariffs; Next Bucks Trend

Source: Sharecast

Risk Disclosure