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(Alliance News) - European stocks were calmer on Wednesday, shaking off another day of declines in New York, though tariff concerns remain a theme ahead of a key US inflation reading in the afternoon.
The FTSE 100 index traded up 14.81 points, 0.2%, at 8,510.80. The FTSE 250 was up 33.84 points, 0.2%, at 19,804.00, and the AIM All-Share was up 1.27 points, 0.2%, at 679.76.
The Cboe UK 100 was up 0.3% at 850.42, the Cboe UK 250 was up 0.2% at 17,248.24, and the Cboe Small Companies rose 0.3% at 15,119.09.
In Paris, the CAC 40 rose 0.9%, while the DAX 40 in Frankfurt added 0.7%.
"Markets are calmer today after another leg lower in the stock market sell off on Tuesday," XTB analyst Kathleen Brooks commented.
The UK business secretary has described Donald Trump's decision to impose global tariffs on steel and aluminium as "disappointing" and said "all options" are on the table to respond in the national interest.
Britain has resisted taking immediate retaliatory action against the move, while the EU has already announced it will introduce counter-measures on American goods.
The tariffs came into effect at midnight in the US, around 4am GMT, and raise a flat duty on steel and aluminium entering America to 25%.
Jonathan Reynolds said: "It's disappointing the US has today imposed global tariffs on steel and aluminium.
"We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.
"Meanwhile we remain resolute in our support for UK industry. This government is working with affected companies today, and I back industry's application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers."
The EU has announced it will respond to US tariffs on steel and aluminium imports by reintroducing tariffs on US products including whiskey, motorcycles, peanut butter and boats starting in April.
The European Commission said in a memo that the countermeasures aim to "protect European businesses, workers and consumers" from the impact of US tariffs of up to 25% on imports of steel, aluminium and some products containing the metals.
According to the Commission, the new US tariffs will affect EU exports worth EUR26 billion, roughly 5% of the EU's total goods exports to the US, resulting "in US importers having to pay up to EUR6 billion in additional import tariffs."
XTB's Brooks commented: "We are far from a rebound in markets, instead this looks like a pause, to see how the next headline from the White House plays out. There are two drivers of this early price action today: 1, Donald Trump, who played down the chances of a US recession, and 2, the prospect of a 30-day truce between Russia and Ukraine, which is seen as being a step towards a more lasting peace process."
UK Prime Minister Keir Starmer on Tuesday "warmly welcomed" an agreement between the US and Ukraine on a proposed ceasefire with Russia, calling it a "remarkable breakthrough".
The US and Ukraine announced on Tuesday the immediate resumption of US military and intelligence aid and a Ukrainian agreement to a 30-day ceasefire - if Russia is on board.
Ukrainian President Volodymyr Zelensky, who was not at the talks, said on X that the US proposal was taking "an even bigger first step-a 30-day full interim ceasefire, not only stopping missile, drone, and bomb attacks, not only in the Black Sea, but also along the entire front line."
US Secretary of State Marco Rubio said in Jeddah that his government would now present the offer to the Russians.
"The ball is now in their court," Rubio said.
Iron pellet maker Ferrexpo, which operates in Ukraine, rose 7.7% in early trade in London.
Wednesday's economic calendar has US consumer price index data at 1230 GMT.
According to consensus cited by FXStreet, the pace of US consumer price inflation is expected to have eased to 2.9% in February, from 3.0% in January.
Deutsche Bank analysts commented: "This will be an important one ahead of the Fed's decision next Wednesday, as another strong print would make it more difficult for them to cut rates this year, particularly given the potential inflationary impact of tariffs in the coming months."
The pound fell to USD1.2933 early on Wednesday, from USD1.2943 at the time of the London equities close on Tuesday. The euro fell to USD1.0909 from USD1.0924. Against the yen, the dollar perked up to JPY148.28 from JPY147.45.
A barrel of Brent edged up to USD69.95 on Wednesday, from USD69.91 late Tuesday afternoon. Gold ebbed to USD2,918.25 an ounce, from USD2,916.72.
Miners helped support the FTSE 100. Anglo American rose 2.0%, while Antofagasta added 1.6%.
Gold producers Fresnillo and Endeavour tracked the precious metal higher, rising 3.2% and 1.6%.
IAG fell 2.5% after Barclays cut the British Airways owner to 'underweight' from 'overweight'.
4imprint slumped 17% as it warned of a slow start to the new financial year.
The direct marketer and distributor of promotional merchandise said pretax profit in the year to December 28 rose 10% to USD154.4 million from USD140.7 million. Revenue rose 3.1% to USD1.37 billion from USD1.33 billion.
Chair Paul Moody said: "In the first two months of 2025 revenue at the order intake level was slightly down compared to the same period in 2024, reflecting continued uncertainty in the market. It is possible that market conditions, including potential tariff impacts, may continue to influence demand in 2025. From our experience, however, as business sentiment improves, demand for promotional products increases as does our ability to gain market share."
4imprint lifted its final dividend by 6.7% to 160 cents per share from 150 cents, taking its total regular dividend 12% higher to 240.0 cents per share from 215.0 cents. In addition, it proposed a 250.0 cents per share special dividend. It did not pay a special dividend in the prior financial year.
4imprint announced Michelle Brukwicki will be appointed as finance chief from May 1. David Seekings steps down on the same day but will remain available to the firm until June 30 to ensure a smooth transition.
Hill & Smith jumped 11%. The infrastructure firm hailed a "record set of results", helped by a strong showing in the US.
Pretax profit in 2024 rose 12% to GBP104.5 million from GBP93.2 million, on revenue that climbed 3.0% to GBP855.1 million from GBP829.8 million.
"Hill & Smith has delivered another record set of results, underpinned by the excellent performance in our US businesses, which continue to benefit from strong demand for our infrastructure solutions. We have continued to actively manage our portfolio with four complementary acquisitions, and the successful divestment of two of our non core, loss making businesses at the beginning of 2025 further improves the quality of the portfolio," Chief Executive Officer Rutger Helbing said. "I am excited about the potential for the group going forward as we continue to build on the strong momentum and we expect another year of good progress in 2025."
North America revenue alone rose 9.8% to USD507.8 million, though UK revenue declined 5.4% to GBP302.1 million.
Hill & Smith said: "As expected, our UK businesses delivered a resilient performance against a more challenging market backdrop, with subdued demand from certain public sector customers, particularly in the period leading up to the general election."
Hill & Smith boosted its final dividend by 16% to 32.5p per share from 28.0p. Its total dividend was 49.0p, up 14% from 43.0p.
The firm also announced a new "medium term financial framework", earmarking annual organic revenue growth between 5% and 7%, and total growth of 10%.
By Eric Cunha, Alliance News news editor
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