The FTSE 100 was lower on Tuesday with investors in ‘wait and see’ mode amid trade talks between the US and major trading partners.
London’s leading index was 0.3% in the red at the time of writing, with housebuilders dragging the index lower despite reasonable gains for mining shares.
The German DAX was down 0.4% as European equity indices tracked US futures lower. The S&P 500 closed out the second quarter at a record high, but the impending risk events of the Non-Farm Payrolls on Thursday and trade talks sapped enthusiasm out of stocks as third-quarter 2025 trading got underway.
“Trade talk is heating up again as President Trump’s 90-day pause on reciprocal tariffs nears its end,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Markets are starting to see that Trump’s bark is worse than his bite, with news that the White House might dial back its tariff plans to avoid reigniting a global trade war the latest example of a softer touch.”
Whether Trump’s ‘bark is worse than his bite’ will drive equity markets in the run-up to trade deadlines 8th and 9th July, and investors are showing the first signs of realigning their portfolio ahead of key announcements that are likley to be fired out via social media.
FTSE 100 Housebuilders
Housebuilding stocks weighed on the FTSE 100 on Tuesday after Nationwide revealed the average UK property price dropped in June as the stamp duty-induced boost to activity faded.
“Housebuilders retreated after disappointing housing data from Nationwide which said average UK prices fell by 0.8% month-on-month in June,” said Dan Coatsworth, investment analyst at AJ Bell.
“Housebuilders have been pinning their hopes on a more robust property market driven by lower mortgage rates. Changes to stamp duty in April might have simply caused a short-term blip in activity and it certainly doesn’t look as if the property market is going into a major decline.”
Persimmon, Taylor Wimpey and Barratt Redrow were all lower by more than 2%.
A weaker housebuilding sector offset gains for the miners that rallied after an upbeat assessment of the Chinese economy. The Caixin China General Manufacturing PMI rose to 50.4 in June after a 48.3 print in May. A reading above 50 signals expansion, while a reading below 50 signals contraction.
“Both supply and demand recovered,” said Dr. Wang Zhe, Senior Economist at Caixin Insight Group.
“Manufacturing production and sales returned to growth after a brief contraction in May. In June, amid improvements in the trade environment, manufacturers made efforts to promote sales, causing total new orders to return to expansion. This improved demand drove the recovery in supply, with the subindex for output rebounding by more than 4 points and moving into expansionary territory.
Miners cheered the positivity in China’s manufacturing sector with Antofagasta, Anglo American and Glencore among the FTSE 100 top risers.
There were also gains for precious metals miners Endeavour Mining and Fresnillo. Both stocks have thrived on investor uncertainty in the wake of Trump’s tariffs, and today’s gains reflect a hint of nervousness as key deadlines approach.