Image Source: Pexels

British stocks edged lower on Thursday as investors navigated the Trump administration's unpredictable trade policies and analysed quarterly reports for potential impacts on company earnings due to the ongoing trade war. The blue-chip FTSE 100 hovered near the flatline by the close, while U.S. markets experienced a sharp recovery ahead of President Trump's scheduled 'Big' announcement at 12 EST.

This week, global stock markets have remained volatile. U.S. President Donald Trump initially criticised Federal Reserve Chairman Jerome Powell but later withdrew his calls for Powell's resignation. Meanwhile, U.S. Treasury Secretary Scott Bessent suggested that high tariffs between the U.S. and China are not sustainable long-term, emphasising that any actions would not be taken unilaterally. British stocks have rebounded from a significant selloff earlier this month, triggered by Trump's tariff decisions. However, the FTSE 100 index is still on track for its second consecutive month of losses, and the midcap index is set for its third month of declines. The Bank of England is closely monitoring the potential threat to economic growth posed by global trade tensions, as stated by Governor Andrew Bailey on Wednesday, just two weeks before the BoE's next rate decision and updated economic forecasts. Investors are almost certain that the BoE will lower rates by 25 basis points on May 8, with expectations of further rate cuts totalling approximately 89 basis points by the end of the year.

Single Stock Stories & Broker Updates:

• Jupiter Fund Management shares fall 3%, among top losers on FTSE mid-cap index. The wealth manager estimates assets dropped to £43 billion from £44.3 billion at the end of Q1, citing elevated market volatility due to trade policies. The stock is down 19% this year.

• Shares of British car distributor Inchcape dropped by as much as 16.9%, marking their lowest point since November 2020. The company is among the biggest losers on the FTSE mid-cap index, which is down 0.3%. Inchcape reported a 5% decline in first-quarter revenue and cautioned that rising tariffs may affect the supply from some vehicle manufacturers. CEO Duncan Tait stated, "Demand is not currently being affected by the tariff situation, although we do anticipate potential impacts on supply from our OEMs, as well as the competitive landscape and market demand." The company maintains its 2025 forecast, excluding possible tariff impacts. Including the day's losses, the stock is down 13.5% year-to-date.

• Shares of Senior Plc rose 4.8%, making it the top gainer on the FTSE 250 index. The British engineering firm reported a 3% revenue increase for the three months to March. It stated that U.S. tariffs have a "limited and manageable" impact and reaffirmed its annual outlook. The company is making progress in selling its aerostructures business, with ongoing discussions with a few parties. The stock is currently up 3.3%, reducing YTD losses to about 22%.

• AJ Bell shares rise 1.7% as Q2 assets under administration leap 13% y/y. Jefferies notes that higher AUA and strong D2C flows are positive, especially with high dealing activity in April. The investment platform sees a 29% y/y increase in assets under management, though AJBA is down 5.6% YTD.

• Shares of Indivior rise 6.3% as Q1 net revenue reached $266 million, exceeding consensus of $243 million. The company maintains its FY2025 guidance and expects continued growth of its key product, SUBLOCADE, in the second half of the year. However, the stock is down about 31% year-to-date as of Wednesday's close.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 7600

• Primary support 7500
• Below 7400 opens 6850
• Primary objective 8500
• Daily VWAP Bullish
• Weekly VWAP Bearish

(Click on image to enlarge)

More By This Author: