The FTSE 100 dipped marginally on Friday as corporate announcements again weighed on the index, and investors digested the latest developments from the White House.
London’s leading index was down 0.15% at the time of writing but remained within touching distance of all-time record highs.
Trump’s threat of ‘reciprocal tariffs’, which could target every trading partner based on existing tariffs on US imports and trade balances, gave investors something to think about on Friday with a potentially complex impact on global trade.
The president’s new plan risks a slowdown in activity as businesses cautiously move forward. Such a move by Trump also risks higher inflation.
Given the backdrop of uncertainty, UK investors with holdings in a selection of London’s leading shares should be content with this week’s performance as the FTSE 100 again displayed its defensive attributes and navigated a week of mixed corporate earnings and macro uncertainties.
However, a second straight day of disappointing corporate updates dragged on the index despite mining companies putting in a solid shift at the top of the leaderboard.
“Banking and pharma stocks pulled the market down, led by HSBC amid talk of more job cuts. Reducing staff numbers typically yields a positive reaction from the market as the business is saving money, yet investors might fear HSBC isn’t going hard enough with trimming its bloated headcount,” said Russ Mould, investment director at AJ Bell.
“NatWest also weighed on the FTSE as its results were solid rather than spectacular. The bank has been doing well, yet the market has already priced in that success. Investors were upset there wasn’t enough in the forward guidance to warrant large upgrades to earnings forecasts, so there was an element of profit-taking on the results.”
NatWest shares were down 2% at the time of writing while HSBC dropped 1%.
Antofagasta and Glencore were the top two risers after metals, including copper, rallied again overnight. Copper prices are 11% higher over the past month and 20% higher year-to-date.