The FTSE 100 was lower on Tuesday as tariff concerns rumbled on after US Treasury Secretary Bessent said China ‘wants to drag everybody else down’, suggesting the relationship wasn’t as rosy as Trump’s social media posts over the weekend would lead us to believe.
London’s leading index was 0.3% lower at the time of writing.
“UK stocks opened lower this morning, tracking declines across Europe as trade tensions creep back into focus,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown
“After a stretch of relative calm, headline risk is making conditions jumpy again and markets are back in the web of reacting to social media posts. But with earnings season kicking off, both at home and across the pond, there are more traditional catalysts on the horizon.”
US earnings season kicks off today with banks releasing earnings, providing investors with insight into how companies are faring in the current climate.
Earnings from the first firms to report were encouraging. Goldman Sachs fell in the US premarket despite earnings coming in ahead of estimates, while JP Morgan was flat as profits rose on higher trading activity. Citigroup also beat estimates and rose in the premarket.
BP was the headline FTSE 100 earnings story on Tuesday, with shares falling 2.4% after the group revealed slow oil trading activity.
“BP’s trading arm has become a thorn in its side. Having warned in April of weak gas trading, the same problem has now been reported with its oil trading arm,” said Russ Mould, investment director at AJ Bell.
“The company might argue that fluctuations with the trading business are par the course, and that its key focus is production. Yet the trading arm is far from insignificant as it can provide a nice sweetener to group earnings.
“Volatile energy prices are generally good for trading, and we’ve certainly seen fluctuations in oil and gas prices over the past year. Questions will now be asked of BP as to why the trading arm isn’t riding high.”
Easyjet was the top riser amid reports shipping firm MSC was eyeing the airline for either a full takeover or significant investment.
Miners were the biggest drag on the FTSE 100 with Anglo American, and Antofagasta and Glencore among the top fallers.