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Tariffs

European Stock Market Opens in the Green Amid Shift in US Trade Policy Rhetoric

Strategic Insights

— 2 min read

European stocks opened with gains on Wednesday, despite US President Donald Trump's stern tone on trade policy, which saw tariffs imposed on copper and pharmaceuticals. The FTSE 100 index rose 7.13 points, or 0.1%, to 8,861.31, while the CAC 40 in Paris increased 0.4%. The pound rose to USD1.3597 from USD1.3574 against the US dollar.

Key Takeaways:

  • The FTSE 100 index rose 7.13 points, or 0.1%, to 8,861.31, while the CAC 40 in Paris increased 0.4%.
  • The pound rose to USD1.3597 from USD1.3574 against the US dollar.
  • President Trump announced a 50% duty on copper imports and threatened to impose tariffs of up to 200% on pharmaceuticals, sparking a shift in tone in his trade policy rhetoric.
  • Copper futures rose 13.25%, or 17% intraday, on the NY exchange, an all-time high.
  • Trump's announcement sent shares of copper miner Antofagasta down 3%, while pharmaceutical companies GSK and AstraZeneca lost 0.5% and 0.8%, respectively.
  • The yield on the US 10-year Treasury was quoted at 4.40% early Wednesday, while the yield on the US 30-year Treasury was quoted at 4.93%.
  • In Asia, the Nikkei 225 in Tokyo ended 0.3% higher, while the Shanghai Composite fell 0.1% and the Hang Seng Index in Hong Kong was down 1.2%.
  • A barrel of Brent oil fell to USD69.72, while gold prices rose to USD3,292.40 an ounce.
  • Tobacco companies Imperial Brands and BAT added 1.7% and 2.5%, respectively, after Jefferies started them at 'buy'.
  • WPP slumped 14% after cutting guidance for 2025.
  • Close Brothers fell 7.7% after announcing it was "proactively shaping" its premium finance business.
  • Hunting jumped 12% after reporting good growth in the first half and announcing a buyback programme.
  • Jet2 fell 6.4% despite releasing stronger annual results, although the airline decided against offering guidance for the new year.

Statistics:

  • The FTSE 100 index rose 7.13 points, or 0.1%, to 8,861.31.
  • The CAC 40 in Paris increased 0.4%.
  • Copper futures rose 13.25%, or 17% intraday, on the NY exchange.
  • The yield on the US 10-year Treasury was quoted at 4.40% early Wednesday.
  • The yield on the US 30-year Treasury was quoted at 4.93%.
  • A barrel of Brent oil fell to USD69.72.
  • Gold prices rose to USD3,292.40 an ounce.
  • WPP slumped 14% after cutting guidance for 2025.
  • Close Brothers fell 7.7% after announcing it was "proactively shaping" its premium finance business.
  • Hunting jumped 12% after reporting good growth in the first half and announcing a buyback programme.
  • Jet2 fell 6.4% despite releasing stronger annual results.

Sources:

  • Alliance News, "Stock prices in Europe open in the green on Wednesday after President Trumps tough tone on trade policy"
  • Deutsche Bank, analysts at Deutsche Bank commented.
  • President Trump, "That's a shift in tone from Trump's own comments on Monday evening..."
  • Close Brothers, "Focusing on commercial lines will enable us to invest in growth and strengthen our position in the market..."
  • Panmure Liberum, analysts commented: "It remains the case that the outcome of the Supreme Court process with respect to motor finance remains the most important..."
  • Hunting, "good" growth in the first half, backed guidance and announce a buyback.
  • Jet2, "Bookings for summer 2025 continue to be made closer to departure, as previously announced..."

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