The FTSE 100 recovered early losses on Monday as traders digested the latest volley of tariff threats by the US President.
While tariff announcements still bring back memories of the fallout from Liberation Day last April, Trump’s propensity to ‘chicken out’ and not follow through on threats has meant the latest outburst was taken largely in the market’s stride.
London’s leading index was flat at the time of writing after recovering losses of around 30 points in the opening hours of trading.
“There is some trepidation in the air after last Friday’s ruling from the Supreme Court,” said AJ Bell investment director Russ Mould.
“While tariffs are generally not seen as market friendly, investors had absorbed the trade policies announced by the Trump administration last year and were just hoping for some certainty and stability.
“Last week’s intervention from the Supreme Court delivers none of that – President Trump’s subsequent announcement of 10% global levies, rising to 15% over the weekend, can stay in place for a few months before they require congressional approval.”
There was a 60:40 split in favour of FTSE 100 gainers on Monday, reflecting the indecision Trump’s comments over the week brought to markets.
JD Sports was the FTSE 100’s top gainer after the struggling retailer launched a £200m buyback programme as shares languished around 80p. JD shares traded above 230p in 2021 and have slowly ebbed away since.
Fresnillo broke above 4,000p, trading up 4% on the day, to the highest point in February as precious metals attracted traders on the back of Trump’s tariff announcement. Gold miner Endevour Mining was 3.6% higher.
Mondi was the FTSE 100’s top loser as selling pressure sparked by last week’s results persisted. Shares were down another 3% on Monday.
Recent all-time highs for BAE Systems prompted profit-taking on Monday, sending shares 2% lower.