(Alliance News) - London's FTSE 100 was flat heading to Tuesday afternoon, awaiting direction from central bank chiefs from either side of the Atlantic.
The Bank of England's Andrew Bailey speaks at 1230 GMT, before the Federal Reserve's Jerome Powell testifies in front of US lawmakers from 1500 GMT.
Brown Brothers Harriman analysts commented: "The spotlight today is on Fed Chair Jay Powell testimony before the Senate Banking Committee. Powell will stress again that the Fed is in no hurry to resume easing. Indeed, the New York Fed survey of consumer expectations contributed to evidence that progress on inflation may be stalling well above 2%. Inflation expectations were unchanged at 3.0% at both the one- and three-year-ahead horizons in January. But median five-year-ahead inflation expectations rose by 0.3pts to 3.0%."
The FTSE 100 index traded up just 3.22 points at 8,771.02. It traded as high as 8,789.58 shortly after the opening bell, its best ever level.
The FTSE 250 was 36.88 points lower, 0.2%, at 20,949.40, and the AIM All-Share added just 0.31 of a point at 724.91.
The Cboe UK 100 was down slightly at 878.55, the Cboe UK 250 fell 0.3% at 18,292.26, and the Cboe Small Companies was up 0.3% at 15,879.14.
In Paris, the CAC 40 was flat, while Frankfurt's DAX 40 rose 0.1%.
The dollar was mixed early Tuesday afternoon. Sterling faded to USD1.2367, from USD1.2381 at the time of the London equities close on Monday. The euro rose to USD1.0322 from USD1.0311. Against the yen, the greenback bought JPY152.37, rising from JPY151.75.
US President Donald Trump signed executive orders to impose 25% tariffs on steel and aluminium imports from March 12, ramping up a long-promised trade war despite warnings from Europe and China.
"Today I'm simplifying our tariffs on steel and aluminium," Trump said Monday in the Oval Office. "It's 25% without exceptions or exemptions."
In an executive order released after, he said: "As of March 12, 2025, all imports of aluminium articles and derivative aluminium articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK shall be subject to the additional ad valorem tariff."
Trump issued a separate order for steel, which said it would apply to all imports from the same countries the aluminium tariffs hit, as well as to Brazil, Japan and South Korea.
Canada and Mexico are the biggest steel importers to the US, according to US trade data. Brazil and South Korea are also major steel providers.
President Donald Trump's decision to impose tariffs on steel and aluminium imports.
German Chancellor Olaf Scholz also said the EU would present a united front and "act together as the largest market in the world".
Trump signed executive orders to impose 25% tariffs on steel and aluminium imports from March 12, despite warnings from Europe and China.
"I deeply regret the US decision to impose tariffs on European steel and aluminium exports," European Commission President von der Leyen said in a statement.
"Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures. The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers," she added.
A barrel of Brent rose to USD76.77 early Tuesday afternoon, from USD75.88 at the time of the London equities close Monday. Gold rose to USD2,904.13 an ounce, from USD2,903.38. Gold spiked to another record high on Tuesday, this time above the USD2,942 an ounce mark.
ActivTrades analyst Ricardo Evangelista commented: "Gold prices hit an all-time high in early Tuesday trading, edging closer to the USD3,000 level. The rise is driven by a combination of fears over the impact of US tariffs on trade—and threats of retaliation—along with the return of the spectre of inflation and ongoing global geopolitical uncertainty. A global trade war could cause widespread economic damage, increasing the appeal of safe-haven gold.
"At the same time, US protectionism is likely to push up prices for imported goods, driving inflation higher and enhancing the appeal of the precious metal, which is seen as a hedge against monetary devaluation. Given this backdrop, and with several unresolved epicentres of geopolitical instability, the outlook remains bullish for gold, with further price gains possible."
In London, Entain shares tumbled 10%, the worst large-cap performer. The Isle of Man-based betting operator, which owns Labrokes and Coral, said CEO Isaacs, who only started on September 2, has departed "by mutual agreement".
Non-Executive Chair Stella David once again assumes the role of interim CEO, a post she held from December 2023 until September 2024.
Pierre Bouchut, currently senior independent director, will become non-executive chair on an interim basis.
Davy analysts noted Entain is at a "critical point" in its turnaround journey, so the timing of this is "unfortunate and will likely cause investor concerns".
"This will lead to another period of uncertainty while the market awaits a permanent replacement," it added.
BP lost 0.9% as it pledged a reset, reported weaker results but kept up its buyback pace for now.
BP pledged to "fundamentally reset" its strategy, at an update on February 26, although it remained tight-lipped on the detail. BP did say that as part of the update it intends to "review elements of our financial guidance, including our expectations for 2025 share buybacks and capital expenditure".
BP maintained its pace of quarterly buybacks at USD1.75 billion, which it plans to execute ahead of first quarter results.
Bellway fell 4.5%. The Newcastle, England-based housebuilder said in the six months to the end of January total housing completions rose 12% to 4,577 homes from 4,092 in the previous year.
The private reservation rate was ahead of the prior year at 0.51 per outlet per week, up by 19% from 0.43 per outlet per week.
The firm noted that there was no typical autumn increase in reservations but said it had been encouraged by a seasonal pick-up in the early weeks of the spring selling season.
Despite encouragement from early spring enquiries, it said it is "mindful of the sensitivity of customer demand to mortgage affordability and the evolving economic backdrop".
"Bellway remains a long way from building back margins and volumes towards their recent peak in 2022. Yet the company seems to be keen to seize on any positive signs and notes encouraging levels of customer enquiries and reservations. The UK property market currently has the feel of a toddler which has been given too many sweet treats as the looming hike in stamp duty thresholds encourages buyers to conclude transactions before the end of April. Parents know what typically follows a sugar rush and investors are similarly wary of a potential sluggishness post-April, judging by the reaction to Bellway's update," AJ Bell analyst Russ Mould commented.
The mortgage market is still unhelpful for Bellway, given rates have gone up with gilt yields despite interest rates coming down, and the business and the wider industry are seeing building cost inflation tick higher again."
Crimson Tide agreed to an all-share takeover by Checkit worth GBP6.5 million, months after the latter walked away. Crimson Tide shares fell 9.5% while Checkit lost 4.9%.
Under the terms of the merger, each Crimson Tide shareholder would receive six Checkit shares for each Crimson Tide share.
Checkit said it has considered for a long time that there are "compelling strategic and financial reasons" for a combination with Crimson Tide and has engaged in discussions over the last four years.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2025 Alliance News Ltd. All Rights Reserved.
