(Alliance News) - Stock prices in London closed in the red on Friday, following US President Donald Trump's renewed tariff threats against the EU and Apple.
Also, Trump wrote on his Truth Social platform: "Our negotiated deal with the UK is working out well...I strongly recommend to them, however, that in order to get their Energy Costs down, they stop with the costly and unsightly windmills, and incentivize modernized drilling in the North Sea, where large amounts of oil lay waiting to be taken...UK's Energy Costs would go WAY DOWN, and fast!"
The FTSE 100 index closed down 21.29 points, 0.2%, at 8,717.97. The FTSE 250 ended down 90.94 points, 0.4%, at 20,708.72, and the AIM All-Share closed down 0.70 points, 0.1%, at 736.04.
The Cboe UK 100 ended down 0.3% at 867.21, the Cboe UK 250 closed down 0.5% at 18,191.26, and the Cboe Small Companies ended up 0.2% at 16,591.21.
On the FTSE 100, GSK was down 0.3% despite announcing that Blenrep has received a "positive opinion" from the European Medicines Agency.
The London-based pharmaceutical company said the EMA's Committee for Medicinal Products for Human Use has recommended the drug's approval for adults with relapsed or refractory multiple myeloma, a form of cancer.
GSK said it expects the drug to be approved by the European Commission in the third quarter of 2025.
Games Workshop lost 3.2%, despite forecasting double-digit annual growth.
The Nottingham-based Warhammer owner expects pretax profit of at least GBP255 million for the year ending June 1, up 26% on-year and ahead of market expectations. Core operating profit is expected to increase by 13%, and core revenue by 13%.
However, Games Workshop said that while licensing revenue in the period was at a record level, it is not expecting this to repeat in the next financial year.
International Distribution Services ended down 0.1%.
Regulators have launched an investigation into International Distribution Services' Royal Mail after it delivered just over three-quarters of first-class post on time last year, missing its delivery targets set by the communications watchdog.
The company said 76.3% of first-class mail arrived within one working day in the 12 months to the end of March.
AJ Bell led the FTSE 250, having jumped 8.4%.
The Manchester-based retail investment platform provider reported GBP68.8 million in pretax profit for its first half year, up 12% annually. This was largely driven by investment income growing 11% on-year to GBP65.5 million, while revenue was up 17% to GBP153.2 million.
AJ Bell lifted its interim dividend by 5.9% to 4.50p. It also announced a GBP25 million share buyback, to be completed before the end of the financial year on September 30.
On AIM, Tekcapital surged 17%.
The London-based intellectual property commercialisation company reported pretax operating profit of USD19.2 million for 2024, reversing a USD12.7 million loss the year prior.
Portfolio return and revenue surged to USD21.2 million in 2024 from a loss of USD13.0 million the prior year, driven primarily by gains in the fair value of portfolio investments. The portfolio's valuation rose 50% year-on-year to USD61.5 million.
Net assets climbed 46% to USD70.1 million and the net asset value per share increased to 33 US cents from 27 cents.
OptiBiotix Health dropped 18%.
The York, England-based life sciences firm, as well as establishing a new 100% owned subsidiary OptiBiotix Health USA, said it raised GBP750,000 through a placing of 5.4 million shares at 14p each.
OptiBiotix also issued one warrant for every two placing shares, at 21p each with a three-year term.
In currencies, the pound was quoted higher at USD1.3509 at the London equities close Friday, compared to USD1.3425 at the close on Thursday. The euro stood higher at USD1.1348 at the European equities close Friday, against USD1.1285 at the same time on Thursday. Against the yen, the dollar was trading lower at JPY142.70 compared to JPY143.81 late Thursday.
In European equities on Friday, the CAC 40 in Paris dropped 1.8%, while the DAX 40 in Frankfurt ended fell 1.5%.
This followed Trump threatening a 50% tariff on the European Union, accusing the trade bloc of "being very difficult to deal with".
"Our discussions with [the EU] are going nowhere!" Trump posted on his Truth Social platform. "Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States."
Also, Trump threatened Apple with a 25% tariff if the iPhones the company sells in the US are not manufactured locally.
Again posting on Truth Social, Trump said he had "long ago informed [CEO] Tim Cook of Apple that I expect their iPhones that will be sold in the US of America will be manufactured and built in the US, not India, or anyplace else".
Apple shares were trading 2.5% lower in New York near its Friday open.
Stocks in New York were lower at the London equities close, with the DJIA down 0.5%, the S&P 500 index down 0.7%, and the Nasdaq Composite down 0.9%.
The yield on the US 10-year Treasury was quoted at 4.51%, narrowing from 4.57% late Thursday. The yield on the US 30-year Treasury was quoted at 5.04%, narrowing from 5.08%.
"US index futures and Apple shares tumbled in premarket as Trump warned the company of 25% tariffs if manufacturing of iPhones is not moved to the United States," StoneX's Fawad Razaqzada commented. He then triggered an even bigger [decrease] after recommending 50% tariffs on EU starting June 1. The German DAX dropped over 500 points and similar moves were seen in US index futures.
"All the optimism over trade deals wiped out in minutes – seconds, even."
Razaqzada continued: "The other big concerns remain over US Treasuries and rising long term bond yields. Long-dated US Treasuries managed to claw back some of their recent losses yesterday and that helped the markets a little. But if the bond market selling resumes then yields will remain elevated and pressurize all sorts of risk assets.
"Without a fundamental shift in US fiscal policy, the implications of rising US borrowing costs and widening fiscal deficits means the US is on an unstable fiscal policy path, which could lead to heighten market volatility."
Brent oil was quoted higher at USD64.71 a barrel at the London equities close Friday from USD64.05 late Thursday.
Gold was quoted at USD3,356.90 an ounce at the London equities close Friday, higher against USD3,289.44 at the close on Thursday.
In the weekend's economic calendar, all eyes will be on Federal Reserve Chair Jerome Powell's speech on Sunday evening (UK time).
UK markets will be closed on Monday for the Spring Bank Holiday.
Then in Tuesday's UK corporate calendar, Greencore Group releases its half-year results.
The economic calendar for Tuesday includes eurozone and German consumer confidence; CBI distributive trades from the UK; and the Redbook and house price indices from the US.
By Emma Curzon, Alliance News reporter
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