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British stocks experienced another decline on Wednesday, led by significant drops in the healthcare and energy sectors, as the implementation of U.S. tariffs dampened hopes for concessions from President Donald Trump and intensified worries about the global economy. The extensive tariffs introduced by Trump, including a massive 104% duty on Chinese goods, have disrupted the long-standing global trading system. While Britain maintains the lowest import duty rate at 10%, the Bank of England has warned of rising global economic risks, leaving the UK particularly exposed due to its open economy and substantial financial sector. Healthcare stocks saw sharp declines, mirroring their European counterparts, after Trump signaled forthcoming tariffs on the sector. Major companies like AstraZeneca, GSK, and Hikma Pharmaceuticals suffered significant losses on the FTSE 100, with shares dropping between 2.5% and 5.3%. The UK pharmaceutical and biotechnology index fell 4.8%, hitting its lowest level in over three months. The energy sector also faced challenges, with its index dropping 3.2%, as oil prices fell for the fifth consecutive day, reaching their lowest point since February 2021. This decline was driven by fears over the trade war's impact on global economic growth, which raised concerns about reduced energy demand. In contrast, precious metal miners gained 1.7%, benefiting from a rise in gold prices as investors sought safe-haven assets amid escalating trade tensions and recession fears.

Yields on British 30-year government bonds surged to their highest levels since July 1998, driven by a sharp overnight rise in 30-year U.S. Treasury yields following Trump’s decision to impose 104% tariffs on China. Interest rate futures now suggest the Bank of England is likely to lower rates by 85 basis points this year. A rate cut of at least 25 basis points at the May 8 meeting is considered highly probable, with roughly a 10% chance of a more significant 50-basis-point reduction. Before Trump’s tariff announcement, markets had only priced in a 50% likelihood of a rate cut in May and anticipated just over 50 basis points of easing by the end of 2025.

Single Stock Stories & Broker Updates:

• Shares of JD Sports Fashion rose 13.01%. For 2025/26, they expect to meet analysts' consensus of £920 million ($1.18 billion). Q425's like-for-like revenue growth was 0.3%, aided by strong performance in Europe. The company foresees a volatile trading environment and anticipates FY26 revenue to be below FY25. They note the impact of new U.S. tariffs is uncertain. Additionally, they announced a £100 million share buyback program. The stock is down ~34% YTD.
• Shares of Saga rose 1.44% as it reported a 25% increase in FY underlying PBT, exceeding prior growth expectations. The company anticipates lower underlying PBT for 2025/26 due to rising financing costs but aims to reduce net debt. Saga is preparing to sell its Insurance Underwriting business, AICL, and partner with Ageas. Peel Hunt analysts believe the long-term outlook is more optimistic, especially for the Travel business post-restructuring. Year-to-date, the stock has dipped 0.79%.
• Fresnillo shares climb 2.6% to 885p, ranking among FTSE 100's top gainers. Citi raises PT to 1050p (up 17.9% from last close). Brokerage expects steady Q1 silver production and weaker gold output per 2025 guidance. Of 13 analysts, 4 rate "buy" or higher, 9 rate "hold"; median PT is 852p (LSEG data). Stock has gained 32.82% YTD as of Tuesday's close.
• Shares of Petra Diamonds fell 6.1%, making it one of the top losers in the FTSE small-cap index, which is down 1.4%. The company's Tender 5 sales for Cullinan Mine (around 200,000 carats) are postponed due to uncertainties from U.S. tariffs, impacting pricing assumptions for FY 2025. Peel Hunt maintains a "buy" rating with a target price of 50 pence. Year-to-date, the stock is down approximately 9.6%.
• Shares of British healthcare REIT Assura rose 5.4% after agreeing to a £1.61 billion takeover bid from KKR & Stonepeak Partners, offering shareholders 48.56p in cash and a quarterly dividend of 0.84p. Shares of Primary Health Properties, whose £1.5 billion bid Assura rejected, opened lower but gained 0.4%. As of the last close, Assura was up ~18.42%, and PHP was up ~1.2% YTD.
• Shares of British recruiter PageGroup fell by 4.3%, with the FTSE small cap index down 1.7%. The company announced a £15 million cost reduction program after a 9% drop in Q1 gross profit to £194.2 million. It is not providing forward-looking guidance due to uncertainties from recent U.S. tariffs. Shares are down approximately 25.3% YTD.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8950

• Primary support 7500
• Below 7400 opens 6850
• Primary objective 9050
• Daily VWAP Bearish
• Weekly VWAP Bearish

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