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Yahoo
11-06-2025
- Business
- Yahoo
Housebuilding and China trade hopes lift London stocks
Stocks in London ended higher on Tuesday, led by gains in housebuilders and amid signs of progress in US-China trade talks. The FTSE 100 index rose 20.80 points, 0.2%, to 8,853.08. It had earlier risen as high as 8,886.06. The FTSE 250 ended up 103.55 points, 0.5%, at 21,389.46, and the AIM All-Share climbed 2.43 points, 0.3%, to 766.32. In Paris, the Cac 40 rose 0.2%, while Frankfurt's Dax 40 ended 0.8% lower. In the UK, figures showed the unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast. The Office for National Statistics said the rate increased to 4.6% in the period from February to April, in line with FXStreet-cited consensus, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS. The ONS also said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses. However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet. Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%. 'Today's data was soft across the board. Wage growth slowed in April and was revised lower in March. 'Unemployment rose while vacancies fell. Tax data for May suggests further easing to come. 'This doesn't change our June (Bank of England) call for a hold, but solidifies the case for easing,' analysts at Barclays said. Barclays added that the data 'gives us increased confidence in our forecast that the (Monetary Policy Committee) will cut in August'. Rate cut optimism was reflected in a weaker pound. Sterling was quoted at 1.3509 dollars late on Tuesday afternoon in London, lower compared to 1.3556 dollars at the equities close on Monday. The euro stood at 1.1418 dollars, little changed against 1.1419 dollars. Against the yen, the dollar rose to 144.93 yen compared to 144.42 yen. The data also gave a lift to rate-sensitive housebuilders, who took further encouragement from an upbeat trading statement from Bellway and a rumoured government announcement. Bellway, up 7.9%, said it is on track for 'strong growth in volume output and profits' in its financial year, and it predicted average selling prices will be above previous guidance. The housebuilder said it saw 'robust' trading through the spring selling period. 'Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. 'We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26,' chief executive Jason Honeyman said. Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 homes in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes. The overall average selling price is now expected to be around £315,000, up from its previous guidance of £310,000 and a rise from £307,909 last year. It put the guidance hike to 'changes in product mix'. 'Bellway's update should be well-received as there was a degree of caution in the market around slower trading after the stamp duty changes,' analysts at Stifel commented. The statement supported the housebuilding sector. On the FTSE 100, Persimmon rose 6.0%, Barratt Redrow climbed 5.6% and Taylor Wimpey advanced 4.6%. In addition, the Financial Times reported that Chancellor Rachel Reeves has drawn up plans for a housing bank, to be announced as early as Wednesday's spending review, alongside a potential long-term funding settlement for affordable homes of up to £25 billion. The plans would enable Homes England, the Government's housing agency, to more easily deliver cheaper financing to housebuilders by redesignating it as a public financial institution, according to FT sources. Analysts at RBC Capital Markets said this would provide 'a welcome lift to the sector'. In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.3% higher, and the Nasdaq Composite 0.2% to the good at the time of the closing bell in London. The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49% on Monday. The yield on the US 30-year Treasury was quoted at 4.95%, narrowing from 4.96%. Negotiations between US and Chinese officials in London stretched into a second day, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy. The talks were 'going well,' US commerce secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday's discussions to last 'all day'. US President Donald Trump told reporters at the White House on Monday: 'We are doing well with China. China's not easy.' He added: 'I'm only getting good reports.' Back in London, Marks & Spencer rose 3.8% after it reopened its website to shoppers, having been forced to halt internet orders in April following a damaging cyber attack. The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales. Rival Next, a perceived beneficiary from the outage at M&S, fell back 2.7%. On the FTSE 250, Hochschild Mining plunged 23% after the London-based gold and silver miner in Argentina, Brazil and Peru said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project. Hochschild Mining said it has suffered 'contractor performance issues', alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years. Hochschild is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining 'will continue as planned'. The biggest risers on the FTSE 100 were Persimmon, up 77.50 pence at 1,380.0p, Barratt Redrow, up 25.30p at 475.3p, Taylor Wimpey, up 5.35p at 121.7p, Marks & Spencer, up 13.60p at 373.4p and Shell, up 90.5p, at 2,595.5p. The biggest fallers on the FTSE 100 were Standard Chartered, down 34.0p at 1,148.0p, Barclays, down 9.1p at 323.3p, Next, down 345.0p at 12,495.0p, BAE Systems, down 50.5p at 1,872.0p, and Fresnillo, down 34.0p at 1,340.0p. Brent oil rose to 67.82 dollars a barrel late in London on Tuesday afternoon, from 66.88 dollars late on Monday. Gold was quoted lower at 3,325.36 dollars an ounce against 3,329.84 dollars on Monday. Wednesday's global economic calendar sees a US inflation reading. The UK corporate calendar on Wednesday has full-year results from pub operator Fuller, Smith & Turner. Contributed by AllianceNews Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Housebuilding and China trade hopes lift London stocks
Stocks in London ended higher on Tuesday, led by gains in housebuilders and amid signs of progress in US-China trade talks. The FTSE 100 index rose 20.80 points, 0.2%, to 8,853.08. It had earlier risen as high as 8,886.06. The FTSE 250 ended up 103.55 points, 0.5%, at 21,389.46, and the AIM All-Share climbed 2.43 points, 0.3%, to 766.32. In Paris, the Cac 40 rose 0.2%, while Frankfurt's Dax 40 ended 0.8% lower. In the UK, figures showed the unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast. The Office for National Statistics said the rate increased to 4.6% in the period from February to April, in line with FXStreet-cited consensus, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS. The ONS also said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses. However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet. Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%. 'Today's data was soft across the board. Wage growth slowed in April and was revised lower in March. 'Unemployment rose while vacancies fell. Tax data for May suggests further easing to come. 'This doesn't change our June (Bank of England) call for a hold, but solidifies the case for easing,' analysts at Barclays said. Barclays added that the data 'gives us increased confidence in our forecast that the (Monetary Policy Committee) will cut in August'. Rate cut optimism was reflected in a weaker pound. Sterling was quoted at 1.3509 dollars late on Tuesday afternoon in London, lower compared to 1.3556 dollars at the equities close on Monday. The euro stood at 1.1418 dollars, little changed against 1.1419 dollars. Against the yen, the dollar rose to 144.93 yen compared to 144.42 yen. The data also gave a lift to rate-sensitive housebuilders, who took further encouragement from an upbeat trading statement from Bellway and a rumoured government announcement. Bellway, up 7.9%, said it is on track for 'strong growth in volume output and profits' in its financial year, and it predicted average selling prices will be above previous guidance. The housebuilder said it saw 'robust' trading through the spring selling period. 'Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. 'We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26,' chief executive Jason Honeyman said. Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 homes in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes. The overall average selling price is now expected to be around £315,000, up from its previous guidance of £310,000 and a rise from £307,909 last year. It put the guidance hike to 'changes in product mix'. 'Bellway's update should be well-received as there was a degree of caution in the market around slower trading after the stamp duty changes,' analysts at Stifel commented. The statement supported the housebuilding sector. On the FTSE 100, Persimmon rose 6.0%, Barratt Redrow climbed 5.6% and Taylor Wimpey advanced 4.6%. In addition, the Financial Times reported that Chancellor Rachel Reeves has drawn up plans for a housing bank, to be announced as early as Wednesday's spending review, alongside a potential long-term funding settlement for affordable homes of up to £25 billion. The plans would enable Homes England, the Government's housing agency, to more easily deliver cheaper financing to housebuilders by redesignating it as a public financial institution, according to FT sources. Analysts at RBC Capital Markets said this would provide 'a welcome lift to the sector'. In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.3% higher, and the Nasdaq Composite 0.2% to the good at the time of the closing bell in London. The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49% on Monday. The yield on the US 30-year Treasury was quoted at 4.95%, narrowing from 4.96%. Negotiations between US and Chinese officials in London stretched into a second day, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy. The talks were 'going well,' US commerce secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday's discussions to last 'all day'. US President Donald Trump told reporters at the White House on Monday: 'We are doing well with China. China's not easy.' He added: 'I'm only getting good reports.' Back in London, Marks & Spencer rose 3.8% after it reopened its website to shoppers, having been forced to halt internet orders in April following a damaging cyber attack. The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales. Rival Next, a perceived beneficiary from the outage at M&S, fell back 2.7%. On the FTSE 250, Hochschild Mining plunged 23% after the London-based gold and silver miner in Argentina, Brazil and Peru said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project. Hochschild Mining said it has suffered 'contractor performance issues', alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years. Hochschild is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining 'will continue as planned'. The biggest risers on the FTSE 100 were Persimmon, up 77.50 pence at 1,380.0p, Barratt Redrow, up 25.30p at 475.3p, Taylor Wimpey, up 5.35p at 121.7p, Marks & Spencer, up 13.60p at 373.4p and Shell, up 90.5p, at 2,595.5p. The biggest fallers on the FTSE 100 were Standard Chartered, down 34.0p at 1,148.0p, Barclays, down 9.1p at 323.3p, Next, down 345.0p at 12,495.0p, BAE Systems, down 50.5p at 1,872.0p, and Fresnillo, down 34.0p at 1,340.0p. Brent oil rose to 67.82 dollars a barrel late in London on Tuesday afternoon, from 66.88 dollars late on Monday. Gold was quoted lower at 3,325.36 dollars an ounce against 3,329.84 dollars on Monday. Wednesday's global economic calendar sees a US inflation reading. The UK corporate calendar on Wednesday has full-year results from pub operator Fuller, Smith & Turner. Contributed by AllianceNews
Yahoo
01-06-2025
- Business
- Yahoo
Trump wins temporary reprieve as he fights against court block on tariffs
The Trump administration is racing to halt a major blow to the president's sweeping tariffs after a US court ruled they 'exceed any authority granted to the president'. A US trade court ruled Donald Trump's tariffs regime was illegal on Wednesday in a dramatic twist that could block the president's controversial global trade policy. On Thursday, an appeals court agreed to a temporary pause in the decision pending an appeal hearing. The Trump administration is expected to take the case to the supreme court if it loses. The ruling by a three-judge panel at the New York-based court of international trade came after several lawsuits argued Trump had exceeded his authority, leaving US trade policy dependent on his whims and unleashing economic chaos around the world. Related: Elon Musk announces exit from US government role after breaking with Trump on tax bill On Thursday, the Trump administration filed for 'emergency relief' from the ruling 'to avoid the irreparable national-security and economic harms at stake'. The White House press secretary, Karoline Leavitt, said the judges had 'brazenly abused their judicial power to usurp the authority of President Trump' in what she characterised as a pattern of judicial overreach. 'Ultimately the supreme court must put an end to this,' she said. Leavitt's comments came as a second judge, Washington DC district court judge Rudolph Contreras, called the tariffs 'unlawful' and ordered a preliminary injunction on the collection of tariffs from a pair of Illinois toy importers, which brought the case. Tariffs typically need to be approved by Congress but Trump has so far bypassed that requirement by claiming that the country's trade deficits amount to a national emergency. This had left him able to apply sweeping tariffs to most countries last month, in a shock move that sent markets reeling. The court's ruling stated that Trump's tariff orders 'exceed any authority granted to the president … to regulate importation by means of tariffs'. The judges were keen to state that they were not passing judgment on the 'wisdom or likely effectiveness of the president's use of tariffs as leverage'. Instead, their ruling centred on whether the trade levies had been legally applied in the first place. Their use was 'impermissible not because it is unwise or ineffective, but because [federal law] does not allow it', the decision explained. Financial markets cheered the court's ruling, with the US dollar rallying in its wake, soaring against the euro, yen and Swiss franc. In Europe, the German Dax rallied 0.9%, while France's Cac 40 rose 1%. The UK's FTSE 100 blue-chip index ticked up 0.1% at the start of trading. Stocks in Asia also climbed on Thursday, while in the US stock markets all rose marginally. The ruling immediately invalidated all of the tariff orders that were issued through the International Emergency Economic Powers Act (IEEPA), a law meant to address 'unusual and extraordinary' threats during a national emergency. The judges said Trump must issue new orders reflecting the permanent injunction within 10 days. White House officials have hit out at the court's authority. The ruling, if it stands, blows a giant hole through Trump's strategy to use steep tariffs to wring concessions from trading partners, draw manufacturing jobs back to US shores and shrink a $1.2tn (£892bn) US goods trade deficit, which were among his key campaign promises. Related: Trump claimed 'tariffs are easy' – he's learning the hard way that's not the case Without the help of the IEEPA, the Trump administration would have to take a slower approach, launching lengthier trade investigations and abiding by other trade laws to back the tariff threats. The decision is also likely to embolden other challenges to Trump's policy. Last month, California's governor, Gavin Newsom, filed a lawsuit against the tariffs, arguing they were 'illegal, full stop'. The court was not asked to address some industry-specific tariffs Trump has issued on cars, steel and aluminium, using a different statute, so these are likely to remain in place for now. Analysts at Goldman Sachs said that there could be other legal avenues for Trump to impose across-the-board and country-specific tariffs, saying: 'This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners.' Other options for the president include sections under various trade acts that grant him powers to intervene on trade policy, albeit in an often slower and, in some instances, more limited way. Stephen Miller, the White House deputy chief of staff for policy, hit out at the ruling in a social media post that claimed 'the judicial coup is out of control'. After a relatively long – for him – period of silence on his social media platform, Trump resumed posting on Thursday, with a 500-word screed attacking the three judges who ruled against him. Trump's post began by noting that the order to unwind the tariffs had been paused temporarily by an appeals court, but then turned to baseless speculation that the three judges on the federal trade court must have been motivated by hatred for him. 'Where do these initial three Judges come from? How is it possible for them to have potentially done such damage to the United States of America? Is it purely a hatred of 'TRUMP?' What other reason could it be?' the president asked, without noting that he had appointed one of the judges himself in 2018. Trump's curiosity as to what could possibly explain the decision did not, apparently, extend to reading any of the 49-page explanation written by the court, because his post did not deal with any of the legal issues raised in the opinion. At least seven lawsuits have challenged Trump's border taxes, the centrepiece of Trump's trade policy. The court made its ruling in response to two cases. One was filed by a group of small businesses, including a wine importer, VOS Selections, whose owner said the tariffs were having a major impact and his company may not survive. The other was filed by a dozen US states, led by Oregon. 'This ruling reaffirms that our laws matter, and that trade decisions can't be made on the president's whim,' said the Oregon attorney general, Dan Rayfield. Related: Trump allies rail against court ruling blocking wide swath of tariffs The plaintiffs in the tariff lawsuit argued that the emergency powers law did not give the president the power to apply tariffs, and even if it had done, the trade deficit did not qualify as an emergency, which is defined as an 'unusual and extraordinary threat'. The US has run a trade deficit with the rest of the world for 49 consecutive years. Trump also targeted imports from Canada, China and Mexico, claiming his decision was meant to combat the illegal flow of immigrants and the synthetic opioids across the US border. His administration pointed to the court's approval of Richard Nixon's emergency use of tariffs in 1971, and claimed that only Congress, and not the courts, could determine the 'political' question of whether the president's rationale for declaring an emergency complied with the law. Reuters and the Associated Press contributed reporting
Yahoo
30-05-2025
- Business
- Yahoo
UK stock markets rise with trading steady while US tariffs ‘in limbo'
UK stock markets have ended the month in the green as markets remain steady in the face of persistent uncertainty over Donald Trump's tariffs. London's FTSE 100 rose 55.93 points, or 0.64%, to close at 8,772.38. The index outperformed European peers, with Germany's Dax rising 0.27%, while France's Cac 40 closed 0.36% lower. Trading started off on the back foot over on Wall Street. The S&P 500 was down about 0.35%, and Dow Jones was 0.15% lower by the time European markets closed. A group of equity analysts for Barclays wrote in a research note: 'Equity markets held steady this week amidst ever changing policy narratives.' 'It also shows that investors are reacting more calmly to tariff headlines now, viewing them increasingly as negotiation tactics.' They added that there were signs of 'fatigue' among traders as Mr Trump's trade policy is held 'in limbo'. In new developments this week, the US president is fending off potential roadblocks to his trade policies from the US courts. On Thursday, a federal appeals court said it was allowing Mr Trump to continue collecting import taxes for now, a day after a lower court blocked the duties. Barclays' analysts said the 'guessing game on tariffs leaves the market exposed' to sharp moves as a result of the changes. Meanwhile, the pound was down about 0.1% against the US dollar, at 1.348, and rising around 0.1% against the euro, at 1.187. In company news, M&G said it had partnered with Japanese life insurer Dai-ichi Life to accelerate the group's expansion into European private markets, and give it greater access to markets in Japan and across Asia. Dai-ichi Life plans to buy a 15% stake in M&G as part of the deal, the firm said, which would make it the largest shareholder in the British investment firm. Shares in M&G rose 5.5% on Friday, making it the biggest riser on the FTSE 100. BP announced it has appointed David Hager to its board of directors, who joins following a 40-year career in the oil and gas industry, including as the former chief executive of Devon Energy. Mr Hager 'brings deep-rooted knowledge of the US upstream oil and gas industry', BP's chair Helge Lund said. BP's shares closed 0.5% higher. The biggest risers on the FTSE 100 were M&G, up 12.3p to 236.7p, GSK, up 51p to 1,507p, BT, up 5.5p to 179.45p, AstraZeneca, up 322p to 10,720p, and Unite Group, up 21.5p to 861p. The biggest fallers on the FTSE 100 were IAG, down 6.7p to 326.1p, Spirax, down 100p to 5,715p, Compass Group, down 45p to 2,605p, Polar Capital Technology Trust, down 5.5p to 326.5p, and Rio Tinto, down 59p to 4,402p.
Yahoo
29-05-2025
- Business
- Yahoo
FTSE drifts into the red as Trump tariff ruling boosts Wall Street
London stocks were treading water on Thursday as Europe was broadly unmoved by a US court ruling on President Trump's tariff plans. The move by the US Court of International Trade to block reciprocal tariffs unilaterally imposed by the President was, however, welcomed on Wall Street which made further gains after the opening bell. But traders in the UK, which is expected to see its set of US tariffs largely unchanged, failed to react much to the news, with sentiment largely directed by earnings updates, including a poor reception to figures from Auto Trader. The FTSE 100 London's top index finished down by 0.11%, or 9.56 points, to close at 8,716.45. Europe's other major markets lost early gains as investors and traders digested the tariff ruling, with analysts suggesting it may ultimately have little impact. The Cac 40 ended flat for the day, while the Dax index was down 0.29%. Chris Beauchamp, chief market analyst at IG, said: 'For the FTSE 100 and other European markets, today has been a case of selling the news. 'Indices on the continent have struggled to make headway today but, given the size of the rally in recent weeks and the looming month-end, it is perhaps not surprising to see the move take a breather. 'The Trump administration is sure to appeal the decision, and will also look to employ other methods to impose tariffs, so the court decision is not a definitive resolution of the issue.' In the US, the tech-focused Nasdaq opened higher as it was also buoyed by gains from Nvidia after the chip giant's latest trading update. Meanwhile, sterling pulled back some ground against the dollar during the session. The pound was 0.11% higher at 1.348 US dollars and was down 0.5% at 1.186 euros when London's markets closed. In company news, Auto Trader was a notable faller despite revealing growing demand for used cars. The car-selling platform revealed that the UK's new car market grew 3% last year, but this was driven by sales of company or 'fleet' vehicles, while sales to consumers fell 4% year-on-year. Shares in the company dropped by 11.3% at the end of trading. FTSE 100 firm Relx slipped in value after it was knocked by US health secretary Robert F Kennedy Jr's threat to ban government scientists publishing in medical journals. The publisher of The Lancet, which was among titles mentioned directly by Mr Kennedy, saw shares slip by 1.9% as a result. Bowling alley operator Hollywood Bowl was firmly lower at the close after the recent spell of warm weather dented sales as Britons headed out into the sunshine. Shares in the business were 10.3% lower after it suffered a 'short-term' hit to its UK bowling chain between March and May, during the sunniest UK spring on record. The price of oil pulled back after initially climbing due to hopes the tariff ruling could support international energy demand. A barrel of Brent crude oil was 1.65% lower at 62.12 dollars (£46.04) as markets were closing in London. The biggest risers on the FTSE 100 were: Segro, up 27.8p to 701p; Fresnillo, up 37p to 1,171p; ConvaTec, up 8.6p to 290.4p; Glencore, up 5.85p to 277.9p; and Legal & General, up 4.2p to 246.8p. The biggest fallers on the FTSE 100 were: Auto Trader, down 101.4p to 798.6p; National Grid, down 40.5p to 1,031p; CocaCola HBC, down 94p to 3,842p; Severn Trent, down 62p to 2,660p; and Kingfisher, down 6.1p to 279.2p.
