The FTSE 100 started the session on an even keel, with the mix of macroeconomic developments and corporate updates providing investors little impetus to move the index in either direction.
Donald Trump was again on the tip of everyone’s tongue. Tariffs on steel and aluminium were ushered through overnight, leaving the market questioning who or what will be next. The EU? Automotives? Higher tariffs on China? Time will tell.
In the meantime, the market seems happy to focus on reasonably strong corporate results in the US and Europe, which continue to support demand for equities, with the FTSE 100 hitting another record yesterday.
“UK markets are shrugging off Trump’s latest tariff storm, with the FTSE 100 rising at the open, extending gains from yesterday to reach another all-time high,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown
There wasn’t much to shout about regarding FTSE 100 company earnings on Tuesday. The headline corporate story was the release of BP’s Q4 2024 results that followed reports of an activist investor building a stake in the oil company.
Indeed, BP’s results highlighted the need for a rethink. Refining margins tumbled as overall profit levels took a hit. The company may attribute lower profits to lower oil prices, but comparisons to other major oil companies will show that BP has much room for improvement.
“BP’s latest earnings provided plenty of fodder for activist investor Elliott after reports it had built a stake in the business. The worst annual profit since the pandemic will have done little to reassure other shareholders that the current plan is working,” said AJ Bell investment director Russ Mould.
“Murray Auchincloss said the right things about increasing cash flow and returns and a ‘new direction’ for company ahead of what is turning into a crunch investor day later this month.
“The market has heard a lot from BP about strategy and vision – it wants to see action. This might include abandoning a target to develop 50 gigawatts of renewable energy capacity by 2030.”
BP shares were flat at the time of writing.
Entain was the FTSE 100’s biggest casualty on the news the CEO will depart after a worryingly short period in post. The move rattled investors and shares dropped around 9%.
“Ladbrokes owner Entain has abruptly parted ways with CEO Gavin Isaacs after less than six months in the role,” Matt Britzman explained.
“Details are scarce, and while Entain used the moment to reassure investors that it’s on track to meet 2025 profit expectations, sudden leadership shake-ups rarely go down smoothly – questions will be flying.”