The FTSE 100 jumped on Wednesday on hopes that the trade war triggered by Donald Trump’s trade tariffs had a chance of reconciliation after Trump signalled he was willing to negotiate with China.

• FTSE 100 gained more than 1.5% in early trade
• Trump signals willingness to negotiate with China
• FTSE 100 miners and China-exposed banks lead rally

The softening in Trump’s approach to China sparked a rally in US stocks overnight that followed through into the European session on Wednesday.

London’s leading index was 1.5% higher at the time of writing, while the German DAX surged more than 2.5%.

“Hopes for a reprieve in the trade war are leading to a small swell of investor confidence, with European markets set to ride a wave of gains in early trade,” explained Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“While there’s been no concrete decisions to hang the hat of optimism on, Trump has indicated that he is in a mood for negotiation, saying that eventual tariffs on China won’t be as onerous as 145% threatened. US Treasury Secretary Scott Bessent says he’s also expecting a de-escalation in the trade war with China. While there had already been expectations of a recalibration, these comments have helped wash away some more pessimistic vibes.”

Markets were also buoyed by Donald Trump stepping back from his attack on Federal Reserve Chair Jerome Powell and comments that the US President would not try to oust him. Trump’s threat against the Fed chair sent US stocks into free fall on Monday.

“Worries about Trump wanting to meddle in monetary policy, following his comments about Fed chair Jerome Powell at the weekend appear to be ebbing away, after the President said he had no indication of removing him from office,” Streeter said.

FTSE 100 gainers

The FTSE 100’s China-exposed stocks led the index higher on hopes of reconciliation between the US and China. Natural Resource stocks were among the top risers, with BP adding 4.6% and Glencore rising 4.3%. Glencore was one of the heaviest hit following Trump’s ‘Liberation Day’ tariff announcement.

Copper miner Antofagasta jumped over 5%.

HSBC and Standard Chartered – two banks with substantial operations in China – rose 4% and 5% respectively.

Croda was the FTSE 100’s top riser after revealing an uptick in Q1 revenues and maintaining its profit outlook despite uncertainties around tariffs.

“After a robust start to the year, the outlook remains unchanged, which is likely to come as a relief to shareholders who have seen the stock price fall 19% so far this year,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

Silver-miner Fresnillo sank to the bottom of the FTSE 100 leaderboard, halting a meteoric rally driven by rising precious metals prices amid tariff uncertainty.

“Fresnillo shares slipped this morning following an underwhelming production update from the world’s largest silver miner. Despite the fervour currently gripping the precious metals market, silver output fell nearly 10%, though this was partially offset by a rise in gold production,” explained Mark Crouch, market analyst at eToro.

Fresnillo is still the FTSE 100’s best-performing stock of 2025 with a gain of 55%.

Foreign exchange specialist Argentex Group confirmed it has received proposals from three potential buyers as the company battles a severe liquidity crisis that threatens its solvency, the firm announced today.

The London-listed company confirmed it has rejected offers from Lumon Acquisitions Limited, a vehicle of Pollen Street Capital, and a joint proposal from Terry Clune and Harry Adams.

However, Argentex revealed it is in “advanced discussions” with IFX Payments regarding a possible offer to acquire the entire issued and to be issued share capital of the company.

The announcement comes amid a rapidly deteriorating financial position at Argentex.

The company disclosed that its liquidity position has worsened significantly following yesterday’s announcement that it had been exposed to substantial volatility in foreign exchange rates, resulting in increasing margin calls on its FX Forward and options book.

According to the company statement, “This further reduction in liquidity necessitates an immediate cash injection to ensure the Company’s continued solvency.”

Without such intervention, the Argentex Board has indicated it would “have to take immediate steps to secure the Company’s future and protect value in the business for the Company’s creditors and other stakeholders.”

In addition to the potential takeover, Argentex is seeking to secure a bridging loan from IFX Payments to provide “immediate working capital flexibility” and assist with near-term liquidity needs. The company is also pursuing further ongoing liquidity support from IFX Payments over the coming weeks.

Trading in Argentex shares was suspended on 22 April 2025 and will remain halted pending further announcements regarding both the possible acquisition and the bridging loan.

Croda shares surged higher on Wednesday after the speciality chemicals group maintained its outlook, as first-quarter sales rose following a tough year for the company.

First quarter sales rose to £442 million, representing an 8% increase on a reported basis compared with the previous year and a 9% improvement in constant currency terms.

The robust sales growth stemmed primarily from higher sales volumes, whilst the price/mix headwinds experienced throughout 2024 have begun to abate.

Croda said the group’s adjusted profit before tax for the first quarter aligned with management expectations.

The company provided insight into its cost management and progress toward achieving £25 million in cost savings this fiscal year, while simultaneously identifying additional opportunities to deliver operational efficiencies.

Croda shares were 9% higher at the time of writing.

“Speciality chemical producer Croda has seen its recovery gain further momentum in the first quarter with volumes driving high-single digit sales growth. But given the prevailing macro-economic confusion that’s been brought about by exchanges in the rapidly evolving trade-war, investors will be more focussed on the outlook,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“Croda’s focus on bespoke formulations means it’s deeply embedded with its customer base. Its broad manufacturing footprint also helps to provide some mitigation against tariffs. The company’s planning to pass on any incremental costs to customers too and with alternative sources of supply limited in many cases, it may be something clients will just have to accept.”

Nathan continued to explain that, although the outlook remains unchanged, it should be viewed as a significant win, given the impending disruption from trade tariffs.

“After a robust start to the year, the outlook remains unchanged, which is likely to come as a relief to shareholders who have seen the stock price fall 19% so far this year. But it’s a little too early to give the all-clear,” Nathan said.

“Croda’s game plan rests heavily on improved utilisation within its plants, so things could unravel quickly if demand takes a dip. Some end products, such as those in the life-sciences division, are less sensitive than others to economic conditions, but in the consumer segment things could still become challenging. The weakness in the valuation offers an opportunity to gain exposure to a quality company with a focussed strategy, but in the short-term, the ride could get more bumpy yet.”

There’s no two ways about it, Tesla’s earnings released overnight were woeful. 

The company recorded revenues of $19.1bn in the first quarter, a huge miss of the $21.1bn a consensus of analyst forecasts had predicted. EPS was $0.27 versus expectations of $0.43.

“Tesla’s first-quarter delivery and production numbers on 2 April were as ugly as its Cybertruck design. That meant expectations were rock-bottom in the run-up to its financial results and it’s why the shares didn’t tank upon release of the Q1 earnings,” said Dan Coatsworth, investment analyst at AJ Bell.

Tesla’s problems are well-documented. Increased competition has taken a bite out of Tesla’s market share, and the CEO’s antics are proving to be a significant turn-off for customers.

Tesla shares fell less than 1% in the immediate reaction in after-hours trading following the release of the numbers. The benign response suggests that much of the bad news is already reflected in the price, and sentiment can’t get much worse.

Such a dynamic is required for an asset to bottom and rebound. If most of the investors seeking to sell the stock have already done so, it leaves bulls a clear path to the upside. 

There are also several catalysts that could fire the stock up again. 

Musk stepping back from his role at the US government is the most obvious.

Elon Musk’s stint in White House looks to be coming to an end. Reports suggest that his work Department of Government Efficiency has a time limit and Trump is becoming wary of the risks of having him around. Musk himself said he will reduce the time spent at DOGE from May.

With Musk now set to step down, everyone involved stands to benefit, not least Tesla shareholders. When news broke overnight that Musk would lessen his time at Trump’s side, the stock rallied.

Having Musk back at the helm will increase investor confidence in the stock and raise hopes he will refocus on driving innovation.

Tesla’s valuation isn’t justified by its EV business. Indeed, EVs aren’t the technological wonders they once were, and Tesla is slipping behind in terms of value and product quality compared to peers.

Tesla trades at such a high multiple because investors don’t want to miss out on the next world-changing technological advancement. Musk must be fully committed to the business to achieve ambitions in autonomous vehicles and AI.

“On the product side, more affordable models appear to be streamlined versions of the existing Model 3 and Model Y,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“It’s not quite the disruptive refresh some had hoped for, but if these versions can unlock new customer segments, it could be a net win – especially for maximizing output at current facilities.

“Then there’s the real crown jewel: autonomy. Tesla’s ride-hailing pilot is set to launch in Austin this June, with full-scale Cybercab production ramping up in 2026. In the race to bring AI into the physical world, Tesla still looks like the company with the most to gain.”

With comments overnight suggesting Musk will soon return to Tesla full-time, a bottom could be in the stock.

The FTSE 100 started the Easter-shorten week on a firm footing and continued to recover tariff-induced losses with small gains led by precious metals miners and supermarkets.

With London’s markets closed for the bank holiday yesterday, UK stocks sidestepped another day of volatility in US markets after Donald Trump attacked Fed Chair Powell’s approach to interest rates. Reports suggest Trump’s advisors were exploring ways to remove Powell from his post. 

It goes without saying that the added uncertainty surrounding the head of the Federal Reserve, seen as the ultimate backstop against financial market volatility, was not taken well by US stocks yesterday. 

“What was supposed to be a sleepy Easter Monday turned into anything but, as US markets bled red from the opening bell – light on volume but heavy on drama. With no fresh headlines to blame, the selloff seemed more like a crisis of confidence than of catalyst, as traders wrestled with a growing list of unknowns,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The tariff tug-of-war still has no end in sight, and now the Powell power struggle is adding more fuel to the fire, with whispers from the White House about his potential ousting rattling already jittery investors. At this rate, even bad news might be seen as a buying signal – if only because something, anything, from Washington might offer a sliver of direction.”

The FTSE 100 staged a rally in early morning trade before it faded to trade flat at the time of writing.

The defensive nature of London’s leading index hasn’t made it immune to global volatility, but it has led to outperformance compared to US peers. 

London’s leading index is broadly flat since the start of 2025 after adding 0.1% on Tuesday. The S&P 500 is down 12% on the year. 

Strong gains for precious metals miners Endeavour Mining and Fresnillo on Tuesday again demonstrated London’s weighting towards ‘safe-haven’ stocks, which have helped the index outperform. 

A rally in the pair came as gold topped $3,500 for the first time in history amid heightened investor nervousness.

“The precious metal is strikingly above $3,500 per ounce for the first time and gold bugs will be eyeing the $4,000 level only a matter of weeks after the price moved through $3,000,” AJ Bell’s Russ Mould said.

Supermarkets were among the top risers as investors picked up bargains in Tesco and Sainsbury’s shares after the sector was hit by downbeat profit outlooks as a result of the price war with the discounters. 

DCC shares fell after the company announced the sale of DCC Healthcare for just over £1 billion as it streamlines its business. 

FX broker Argentex announced on Tuesday that its shares were being suspended due to concerns about its liquidity and financial position. 

The company, which itself offers foreign exchange hedging and risk management tools, appears not to have properly hedged and managed its own exposure satisfactorily amid Trump-induced volatility. 

Argentex said it had experienced increased margin calls in its FX forward and options books due to the rapid devaluation of the dollar. The company has attempted to increase the counterparty collateral it holds and is in talks with liquidity providers to bolster reserves.

Nonetheless, Argentex views its current position and ongoing market conditions as sufficient reason to halt trading in its shares.

Why is this good news for IG Markets and CMC Markets?

This isn’t an opportunity for IG and CMC to win new business from Argentex. They operate in different areas of the FX market. Argentex provides business services to companies seeking to hedge their overseas business activities, while IG and CMC primarily offer services to traders and investors seeking to profit from moves in FX, among other asset classes.

IG Group, CMC Markets, and other brokers will benefit from the severe volatility experienced in the wake of Donald Trump’s tariff announcements. The underlying causes of the stresses experienced by Argentex will play directly into the hands of IG and CMC.

Traders tend to attempt to capitalise on heightened volatility by placing more trades, generating higher income for FX and derivatives brokers.

One would expect IG Markets and CMC to announce some form of records when they report trading for the period that includes Trump’s tariffs.

Retail derivative brokers also benefit from more stringent risk management tools that aim to reduce the likelihood of retail traders blowing their accounts up and falling into a negative balance. This doesn’t make them immune to liquidity pressures, but they are much better placed to deal with an increase in volatility.

After a period of low volatility last year, the recent volatility that caused the problems for Argentex will be welcomed with open arms by IG and CMC.

Additionally, new traders often view volatility as an opportunity to start trading, which has historically led to a surge in new account openings among brokers.

IG Group and CMC Markets shares have recovered well from the sell-off, but the prospect of higher earnings is likely to support their shares going into their respective reports.