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British stocks rose on Tuesday as investors evaluated corporate earnings, while markets reacted favourably to the U.S. administration's proposed automotive tariff exemptions. The banking sector saw a 2% increase, led by HSBC's 2.5% rise after the bank reported first-quarter profits exceeding expectations and announced a $3 billion share buyback plan. Conversely, AstraZeneca negatively impacted the blue-chip index, falling 2.7% due to a potential $8 million fine in China for suspected unpaid taxes and quarterly revenue missing analysts' forecasts, causing the healthcare sector to decline by 1.5%. The energy sector also declined by 2%, with BP shares dropping 4% following a greater-than-expected net profit fall. Separately, the Trump administration is reportedly considering easing new auto tariffs by reducing certain duties on foreign components for U.S.-manufactured vehicles while ensuring tariffs on foreign-made cars do not worsen the situation, according to official statements. Although markets have shown signs of stabilisation due to optimism about a potential U.S.-China trade agreement, ongoing uncertainty in the negotiations keeps investors wary. Meanwhile, in the UK, grocery price inflation rose to 3.8% in April, according to industry data released on Tuesday, adding pressure on consumers already facing rising energy, water, and council tax expenses.

Single Stock Stories & Broker Updates:

• Travis Perkins gains 3.6% to 548p, top gainer on FTSE midcap index. Reports 3.7% like-for-like revenue growth at Toolstation in Q1, but total group revenue falls 2.4%. Peel Hunt labels it "an excellent turnaround candidate" as margins improve with a maturing store network, reiterating "buy" with a price target of 750p. Expects the merchanting division to regain earlier profitability. YTD, TPK down ~27.5%.

• Shares of HowdenJoinery rise 6.5% to 787p, becoming the top FTSE 100 gainer with its best one-day gain since Feb 29. The company reports a 3% revenue increase for the 16 weeks to April 19 and reaffirms its 2025 outlook. Barclays describes the update as reassuring, and Howden plans to open 20-25 new UK depots and refurbish ~60 older ones. Despite the gains, the stock is down about 7% YTD.

• Shares of Associated British Foods dropped 9.8% to 2,020p, marking the largest decline on the FTSE 100 index. The stock faces its biggest one-day percentage fall since September 2024. Primark's parent company reported a 10% decrease in HY adjusted operating profit to £835 million ($1.12 billion) and anticipates a full-year adjusted operating loss of up to £40 million from its sugar business. ABF maintains its "low single-digit" annual growth guidance for Primark but is up about 10% year-to-date.

• Shares of AstraZeneca fell 5.2% to 9,987p, being one of the top losers on FTSE 100, which is down 0.03%. The company reported Q1 revenue of $13.6 billion, below the $13.8 billion expectation; however, core EPS of $2.49 surpassed the $2.27 estimate. Ben Kumar from 7IM mentioned that AstraZeneca often meets earnings expectations, describing this as "par." The company may face an $8 million fine over suspected unpaid import taxes in China, related to its drug Enhertu. AstraZeneca reaffirmed its revenue and core EPS guidance for 2025 at CER. The stock is up 0.6% YTD as of the last close.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8600

• Primary support 7500
• Below 7800 opens 7648
• Primary objective 8300
• Daily VWAP Bullish
• Weekly VWAP Bullish

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