London open: Stocks edge up as investors mull fresh Trump tariffs

(Sharecast News) - London stocks edged higher in early trade on Monday as investors reacted calmly to US President Donald Trump's latest tariff announcement over the weekend.

At 0820 GMT, the FTSE 100 was up 0.2% at 8,718.16.

Kathleen Brooks, research director at XTB, said: "As we start a new week, there are another round of tariffs for markets to price in. Trump has announced plans to slap 25% tariffs on imports of steel and aluminium from Monday, at the same time as China will place tariffs on $14bn of US goods, in retaliation for the US's 10% flat tariff on all Chinese imports.

"While $14bn in trade terms is fairly small, the symbolism will have more impact on market sentiment. It highlights the fact that China and the US could not agree on a plan to move forward without tariffs, and essentially starts a new trade war between the two largest global economies.

"Hopes that the US could roll back on tariffs like it did with Mexico and Canada were dashed, and the new measures from China will also include export restrictions for rare earth minerals, which are vital to produce smart phones, some chips, batteries and infrastructure for renewable technology, which could weigh on tech stocks at the start of this week."

In equity markets, BP surged to the top of the FTSE 100 following a Bloomberg report over the weekend that activist investor Elliott Investment Management has built a "significant" stake in the oil giant.

Brooks said: "This is not the first time that an activist investor has targeted BP, Bluebell Capital Partners started to get vocal about BP's under performance last year, and it also called for heads to roll, including the chairman. Like Bluebell, Elliott also wants BP to ditch its plans to reduce its fossil fuel reduction plans.

"The difference this time is that Elliott is better known than Bluebell and has a track record of forcing through the corporate changes that it wants. We don't know how big its stake is, or exactly what its plans are for BP: will it try to break the company up, or could it try to force a sale of the company? BP's shares have risen by 10% so far this year, although they remain well below the highs from last April."

Brooks added: "We do not think that Elliott has enough of a stake in BP yet to force a sale of the company, however, if there was a firm offer on the table for BP in the coming weeks, then the stock price could take off, in our view."

Kosmos Energy gained as it said that the first liquified natural gas production has been achieved at the BP-operated Greater Tortue Ahmeyim project, offshore Mauritania & Senegal.

Chemicals group Johnson Matthey was in the black as it announced that its chair of seven years Patrick Thomas will step down later this year, while its chief financial officer of four years will be replaced by the head of finance at DS Smith.

In broker note action, Spectris rose after an upgrade to 'overweight' at JPMorgan but BA and Iberia owner IAG flew lower after a downgrade to 'neutral' at Goldman Sachs.

Market Movers

FTSE 100 (UKX) 8,718.16 0.20%

FTSE 250 (MCX) 20,917.62 0.53%

techMARK (TASX) 4,713.69 -0.03%

FTSE 100 - Risers

BP (BP.) 461.70p 6.57%

Airtel Africa (AAF) 146.70p 1.59%

Persimmon (PSN) 1,250.00p 1.46%

Berkeley Group Holdings (The) (BKG) 3,766.00p 1.35%

Fresnillo (FRES) 774.00p 1.18%

Barratt Redrow (BTRW) 439.90p 1.17%

Taylor Wimpey (TW.) 117.80p 1.12%

Marks & Spencer Group (MKS) 351.30p 0.98%

SEGRO (SGRO) 709.20p 0.97%

Centrica (CNA) 137.80p 0.95%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 356.00p -2.81%

SSE (SSE) 1,545.50p -0.93%

Anglo American (AAL) 2,446.50p -0.91%

easyJet (EZJ) 526.20p -0.72%

Rio Tinto (RIO) 4,979.50p -0.71%

BAE Systems (BA.) 1,189.00p -0.67%

Relx plc (REL) 4,019.00p -0.50%

AstraZeneca (AZN) 11,550.00p -0.43%

Convatec Group (CTEC) 235.40p -0.42%

Standard Chartered (STAN) 1,106.00p -0.36%

FTSE 250 - Risers

Trainline (TRN) 365.60p 4.46%

Spectris (SXS) 3,132.00p 4.33%

XPS Pensions Group (XPS) 365.00p 3.99%

Auction Technology Group (ATG) 605.00p 3.95%

Foresight Group Holdings Limited NPV (FSG) 385.00p 3.77%

Bridgepoint Group (Reg S) (BPT) 395.40p 3.73%

Target Healthcare Reit Ltd (THRL) 90.00p 3.69%

Domino's Pizza Group (DOM) 297.00p 2.77%

Volution Group (FAN) 540.00p 2.66%

Wood Group (John) (WG.) 70.15p 2.56%

FTSE 250 - Fallers

CMC Markets (CMCX) 216.50p -3.35%

Indivior (INDV) 751.00p -2.85%

Safestore Holdings (SAFE) 585.00p -2.74%

Ibstock (IBST) 167.00p -2.34%

Senior (SNR) 153.80p -2.16%

RHI Magnesita N.V. (DI) (RHIM) 3,550.00p -1.93%

PayPoint (PAY) 680.00p -1.45%

NCC Group (NCC) 140.20p -1.27%

Baillie Gifford Japan Trust (BGFD) 769.00p -0.90%

Drax Group (DRX) 629.50p -0.87%