London close: Stocks mixed as tariff fears waver

(Sharecast News) - London stocks ended Monday largely flat in muted trading, with early optimism around Donald Trump's comments on reciprocal tariffs fading as the session progressed. The FTSE 100 index dipped 0.1% to close at 8,638.01 points, while the FTSE 250 managed a marginal rise of 0.06% to 19,922.43 points.

In currency markets, sterling was last down 0.12% on the dollar to trade at $1.2903, while it rose 0.16% against the euro, changing hands at €1.1958.

"The FTSE 100 experienced a choppy start to the week fluctuating between small gains and losses," said TickMill market strategy partner Patrick Munnelly.

"Initially, the blue chip index was supported by the robust performance of mining shares, while investors looked for greater insight into US president Donald Trump's plans for tariffs.

"This week is poised to deliver significant economic updates, including UK inflation data, a mid-year budget review, and the Federal Reserve's preferred inflation gauge."

However, Munnelly noted that market sentiment was likely to be shaped by developments surrounding Trump's global reciprocal tariff plans, currently set to take effect on 2 April.

"On the domestic front, Britain's vast services sector has shown signs of growth, according to a recent survey, offering some reassurance to finance minister Rachel Reeves ahead of a challenging speech on the economy and public finances this week.

"The preliminary UK S&P PMI for the services sector climbed to a seven-month high of 53.2 in March, up from 51 in February."

UK private sector output accelerates in March

In economic news, UK private sector output accelerated to its fastest pace in six months, led by a rebound in services.

The S&P Global flash composite purchasing managers' index (PMI) rose to 52.0 in March from 50.5 in February, marking the 17th consecutive month of expansion.

Services saw their strongest growth since August 2024, supported by improving domestic and overseas demand.

The services PMI climbed to 53.2 from 51.0.

In contrast, manufacturing suffered from weak international orders and concerns over potential US tariffs.

Output in the sector fell sharply, with the manufacturing output index dropping to a 17-month low of 44.6.

"An upturn in business activity in March brings some good news for the government ahead of the chancellor's Spring Statement, offering a respite from the recent flow of predominantly downbeat economic data," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"However, just as one swallow does not a summer make, one good PMI doesn't signal a recovery.

"The signal from the flash PMI is an economy eking out a modest expansion in March, consistent with quarterly GDP growth of just 0.1%, but with employment continuing to be cut thanks to concern over costs and the uncertain outlook."

On the continent, the eurozone's manufacturing downturn showed signs of easing, helped by hopes of increased infrastructure and defence spending.

The manufacturing PMI rose to 48.7 from 47.6, while the output component jumped to a 34-month high of 50.7.

Overall activity picked up slightly, with the composite PMI edging up to 50.4 from 50.2.

However, the services index slipped marginally to 50.4, indicating stable but subdued activity in that sector.

"Just in time with the beginning of spring we may see the first green shoots in manufacturing," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

"While we should not be carried away by a single data point, it is noteworthy that manufacturers expanded their output for the first time since March 2023.

"It's also encouraging that the index output has risen for three months straight - this is complemented by a much softer fall in new orders and employment."

Across the Atlantic, US business activity continued to expand, driven by a strong services sector.

The S&P Global flash composite output index rose to 53.5 in March, a three-month high.

Services activity surged, with the PMI rising to 54.3 from 51.0.

However, manufacturing slipped into contraction territory, with the index falling to 49.8.

Despite the broader growth, business confidence weakened, particularly in services, amid concerns about demand and uncertainty over the new administration's policies.

Miners rise on sector optimism, THG in the red

On London's equity markets, Anglo American rose 2.24%, Glencore added 1.24%, and Rio Tinto gained 1.48% after JPMorgan lifted its view on EMEA mining and metals to 'overweight' from 'underweight', citing improved prospects for the sector.

John Wood Group advanced 2.17% after announcing an extension to the deadline for Dubai-based Sidara to either make a formal takeover offer or withdraw.

Plus500 edged up 1.03% after the fintech firm said it had acquired Indian financial services company Mehta Equities for $20m.

Pub operator JD Wetherspoon gained 2.03%, continuing to benefit from a positive reaction to Friday's first-half results.

On the downside, THG dropped 7.31% as the company began trading on the FTSE 250 following the spin-off of its Ingenuity division.

JD Sports Fashion fell 2.67%, extending losses triggered by a disappointing update from Nike late last week.

In broker note action, Bunzl rose 0.94% after Deutsche Bank upgraded the stock to 'buy'.

Vodafone fell sharply, down 4.43%, after Bank of America cut its rating to 'neutral'.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,638.01 -0.10% FTSE 250 (MCX) 19,922.43 0.05% techMARK (TASX) 4,696.82 -0.22%

FTSE 100 - Risers

CRH (CDI) (CRH) 7,562.00p 4.30% Flutter Entertainment (DI) (FLTR) 19,160.00p 4.27% Pershing Square Holdings Ltd NPV (PSH) 3,910.00p 4.04% Antofagasta (ANTO) 1,867.00p 2.72% Scottish Mortgage Inv Trust (SMT) 991.20p 2.65% Prudential (PRU) 819.20p 2.63% Lloyds Banking Group (LLOY) 72.36p 2.52% Babcock International Group (BAB) 733.50p 2.30% Anglo American (AAL) 2,305.50p 2.24% Centrica (CNA) 147.65p 2.18%

FTSE 100 - Fallers

Vodafone Group (VOD) 72.10p -4.30% JD Sports Fashion (JD.) 73.74p -2.67% Coca-Cola Europacific Partners (DI) (CCEP) 6,540.00p -2.39% BP (BP.) 440.80p -2.04% Haleon (HLN) 385.50p -1.91% Hikma Pharmaceuticals (HIK) 1,986.00p -1.68% WPP (WPP) 617.00p -1.63% GSK (GSK) 1,485.00p -1.59% National Grid (NG.) 967.20p -1.49% Unite Group (UTG) 806.00p -1.35%

FTSE 250 - Risers

Baillie Gifford US Growth Trust (USA) 237.00p 3.49% Bellway (BWY) 2,412.00p 3.34% Wizz Air Holdings (WIZZ) 1,705.00p 3.33% Polar Capital Technology Trust (PCT) 317.00p 3.26% CMC Markets (CMCX) 213.50p 3.14% Allianz Technology Trust (ATT) 386.00p 3.07% Indivior (INDV) 773.00p 3.00% JPMorgan American Inv Trust (JAM) 1,024.00p 2.50% Bridgepoint Group (Reg S) (BPT) 336.40p 2.44% Trainline (TRN) 287.00p 2.35%

FTSE 250 - Fallers

THG (THG) 34.00p -7.31% Energean (ENOG) 815.50p -6.53% Oxford Nanopore Technologies (ONT) 104.30p -6.46% Harbour Energy (HBR) 195.45p -4.47% Aston Martin Lagonda Global Holdings (AML) 72.95p -4.39% Discoverie Group (DSCV) 572.00p -3.70% Sirius Real Estate Ltd. (SRE) 83.40p -3.53% Pets at Home Group (PETS) 233.40p -3.23% OSB Group (OSB) 446.20p -2.70% Great Portland Estates (GPE) 299.00p -2.61%