London equities closed the week on a positive note, driven by optimism surrounding US trade developments. The FTSE 100 index rose by 0.27% to 8,554.80 points, while the FTSE 250 added 0.23% to close at 20,504.37 points. Sterling also saw gains, strengthening against the dollar and euro. Investors were cautiously optimistic about the US-China trade talks in Geneva, with global capital flowing back into UK markets.
IG’s senior technical analyst, Axel Rudolph, highlighted the positive sentiment in European and US stock markets. However, there were concerns about the limited scope of the UK trade deal and the retention of tariffs on British-made cars. The ongoing trade tensions between the US and China, coupled with China’s strong export growth, added to the market’s cautious outlook.
In economic news, UK retail footfall saw a modest increase in March and April, supported by favorable weather conditions and a late Easter. Footfall across retail parks showed the strongest growth, reflecting seasonal shopping trends and record sunshine levels. The British Retail Consortium noted the positive trend and hoped for continued momentum into the summer months.
Bank of England Governor Andrew Bailey cautioned about the uncertain global economic outlook due to recent shocks and unpredictable trade policies. Bailey’s remarks came after the BoE’s rate cut and amid concerns about inflation and growth. Meanwhile, US President Donald Trump hinted at easing tariffs on Chinese imports, signaling a possible reduction ahead of the weekend trade talks in Geneva.
On the London Stock Exchange, BP surged following reports of potential takeover bids from major energy companies, while Airtel Africa rebounded. IAG, the parent company of British Airways, reported strong first-quarter profits, and JD Sports Fashion saw gains amid optimism over a new UK-US trade agreement. Travis Perkins led mid-cap risers after appointing a new CEO, while SIG shares declined on the news.
Urban Logistics REIT agreed to a takeover by LondonMetric Property, reflecting ongoing market consolidation. Rightmove reaffirmed its 2025 guidance, and Haleon saw an increase following an upgrade. Overall, the market showed resilience amidst trade uncertainties and shifting global dynamics, with various sectors experiencing both gains and losses.
The evolving trade landscape and geopolitical developments continue to influence market sentiment, highlighting the interconnectedness of global economies. As investors navigate these uncertainties, the resilience of UK markets and the potential impact of trade negotiations remain key focal points for market participants.
