UK equities set for lower open amid tariff concerns
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The FTSE 100 is poised for a weaker open on Thursday, with futures down 0.94% as investors react to the fallout from sweeping U.S. tariff measures announced by President Donald Trump. The introduction of import duties across 180 nations, including key UK trading partners, has intensified fears of a slowdown in global trade, weighing heavily on market sentiment.
UK Business Minister Jonathan Reynolds flagged the new tariffs as a direct threat to Britain’s economy, citing in particular the heightened risks to the domestic automotive sector. The UK’s manufacturing base, closely integrated with European and global supply chains, remains acutely exposed to disruptions triggered by a more fragmented trade environment.
Investor expectations around Bank of England policy have also shifted, with market participants increasing their bets on near-term rate cuts. The recalibration reflects growing concerns over external shocks and the need to cushion domestic demand amid rising global uncertainties.
Among individual stocks, BP’s Trinidad and Tobago unit (bpTT) announced the commencement of production from the Cypre gas field, contributing to the group’s broader LNG output strategy. However, shares remain under pressure amid falling crude prices, which have declined by up to 3% post-tariffs.
Wise PLC issued upbeat guidance, forecasting underlying income growth of 15–20% and margin expansion at the upper end of its long-term range by 2026. Currys also revised its full-year profit expectations upward, citing strong performance in early Q1.
Assura confirmed it received an indicative £1.5 billion acquisition proposal from Primary Health Properties, combining cash and shares. Moonpig, by contrast, warned on revenue, noting that soft demand has impeded growth in the current fiscal year.
Commodity markets reflected the broader risk-off mood. Gold surged to a record high as investors rotated into safe-haven assets, while copper prices retreated on fears that global industrial demand will weaken under the new tariff regime.
In dividend news, several UK-listed companies including Rentokil, Smiths Group, Mondi, IMI, and Direct Line will trade ex-dividend today, potentially exerting additional drag on headline indices.
As the trading session begins, the primary market driver remains the geopolitical and macroeconomic implications of the U.S. protectionist shift. Investors will closely monitor any retaliatory measures and the response from central banks in recalibrating their policy outlooks.
UK Business Minister Jonathan Reynolds flagged the new tariffs as a direct threat to Britain’s economy, citing in particular the heightened risks to the domestic automotive sector. The UK’s manufacturing base, closely integrated with European and global supply chains, remains acutely exposed to disruptions triggered by a more fragmented trade environment.
Investor expectations around Bank of England policy have also shifted, with market participants increasing their bets on near-term rate cuts. The recalibration reflects growing concerns over external shocks and the need to cushion domestic demand amid rising global uncertainties.
Among individual stocks, BP’s Trinidad and Tobago unit (bpTT) announced the commencement of production from the Cypre gas field, contributing to the group’s broader LNG output strategy. However, shares remain under pressure amid falling crude prices, which have declined by up to 3% post-tariffs.
Wise PLC issued upbeat guidance, forecasting underlying income growth of 15–20% and margin expansion at the upper end of its long-term range by 2026. Currys also revised its full-year profit expectations upward, citing strong performance in early Q1.
Assura confirmed it received an indicative £1.5 billion acquisition proposal from Primary Health Properties, combining cash and shares. Moonpig, by contrast, warned on revenue, noting that soft demand has impeded growth in the current fiscal year.
Commodity markets reflected the broader risk-off mood. Gold surged to a record high as investors rotated into safe-haven assets, while copper prices retreated on fears that global industrial demand will weaken under the new tariff regime.
In dividend news, several UK-listed companies including Rentokil, Smiths Group, Mondi, IMI, and Direct Line will trade ex-dividend today, potentially exerting additional drag on headline indices.
As the trading session begins, the primary market driver remains the geopolitical and macroeconomic implications of the U.S. protectionist shift. Investors will closely monitor any retaliatory measures and the response from central banks in recalibrating their policy outlooks.