Source: Sharecast
The FTSE 100 was steady at 8,724.13, underperforming its European peers, with the benchmark Stoxx 600 up 0.3%.
In a major blow to Trump’s core economic policy, the US Court of International Trade ruled late on Wednesday that Congress alone had exclusive authority to regulate commerce with other countries, and that presidential powers to safeguard the economy did not overrule that.
The ruling invalidates most of Trump's tariffs with immediate effect. The administration has been given ten days to dismantle the regime.
The White House said it would appeal, however, and claimed it was "not for unelected judges to decide how to properly address a national emergency".
Russ Mould, investment director at AJ Bell, said: "The US Court of International Trade has generated some hope in the market that the tariff threat might be wiped away with its latest ruling.
"For the court to determine that President Trump didn’t have the authority to impose the ‘Liberation Day’ tariffs is a pretty seismic development.
"That the gains were measured rather than blockbuster reflects a healthy level of scepticism over whether this can truly rein in the Trump administration, which has already launched an appeal against the judgement.
"The problem for investors is it could prolong uncertainty even if, ultimately, it results in a better outcome from a market perspective. It also exacerbates the issue of how the big tax cuts being brought forward in the US will be funded - given revenue from tariffs was supposed to help on this front. The first thing to watch is whether or not the administration’s appeal against the decision is successful.
"The news has given global financial markets an undoubted lift though, with strong results and a bullish outlook from AI chipmaker Nvidia also positive for sentiment.
"In London, stocks and investment trusts with exposure to the US moved higher. The bond market though continues to flash a warning signal with yields on sovereign debt moving higher amid a weak auction for 40-year Japanese government debt at the start of this week.
"Renewed concern about inflation were also pushing yields higher as expectations for rate cuts on both sides of the Atlantic are dampened."
In equity markets, Auto Trader tumbled despite delivering a confident outlook alongside its full-year results.
It said group revenues rose 5% to £601.1m over the 12 months to 31 March, as 7% growth at the core Auto Trader platform to £564.8m outweighed a 12% decline in sales at the van-leasing division Autorama to £36.3m. Group operating profits rose 8% to £376.8m.
Richard Hunter, head of markets at Interactive Investor, said: "A strong recent run in the share price has led to some significant investor displeasure at the open, given that the results were no more than in line with estimates and with the outlook containing few positive surprises."
Phoenix Group was weaker after Bank of America Merrill Lynch downgraded the stock to ‘neutral’ form ‘buy’. It said the shares have returned 32% year-to-date and it now only sees 13% total return potential, hence the downgrade.
Market Movers
FTSE 100 (UKX) 8,724.13 -0.02%
FTSE 250 (MCX) 21,015.14 0.33%
techMARK (TASX) 4,833.95 0.30%
FTSE 100 - Risers
easyJet (EZJ) 576.40p 2.67%
Standard Chartered (STAN) 1,168.50p 2.50%
Prudential (PRU) 847.80p 1.75%
Pershing Square Holdings Ltd NPV (PSH) 4,022.00p 1.72%
Flutter Entertainment (DI) (FLTR) 18,485.00p 1.68%
SEGRO (SGRO) 684.00p 1.60%
Smurfit Westrock (DI) (SWR) 3,306.00p 1.60%
Glencore (GLEN) 276.30p 1.56%
Melrose Industries (MRO) 473.70p 1.54%
Legal & General Group (LGEN) 246.30p 1.53%
FTSE 100 - Fallers
Auto Trader Group (AUTO) 799.20p -11.20%
National Grid (NG.) 1,029.50p -3.92%
Severn Trent (SVT) 2,638.00p -3.09%
Phoenix Group Holdings (PHNX) 627.00p -2.41%
Relx plc (REL) 3,971.00p -2.38%
Coca-Cola HBC AG (CDI) (CCH) 3,856.00p -2.03%
Marks & Spencer Group (MKS) 374.00p -1.86%
Hikma Pharmaceuticals (HIK) 2,116.00p -1.49%
Rightmove (RMV) 750.40p -1.47%
Intertek Group (ITRK) 4,742.00p -1.37%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 81.95p 4.39%
Energean (ENOG) 903.50p 3.02%
Dr. Martens (DOCS) 56.60p 3.00%
Coats Group (COA) 79.30p 2.72%
Auction Technology Group (ATG) 461.00p 2.67%
RHI Magnesita N.V. (DI) (RHIM) 2,880.00p 2.49%
Watches of Switzerland Group (WOSG) 419.20p 2.09%
Ocado Group (OCDO) 265.60p 2.08%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 79.50p 2.05%
Empiric Student Property (ESP) 95.30p 1.93%
FTSE 250 - Fallers
Hilton Food Group (HFG) 866.00p -2.59%
Chrysalis Investments Limited NPV (CHRY) 100.40p -2.33%
Great Portland Estates (GPE) 331.50p -2.21%
Diversified Energy Company (DEC) 1,065.00p -1.66%
Baltic Classifieds Group (BCG) 357.50p -1.38%
TR Property Inv Trust (TRY) 320.50p -1.23%
BlackRock World Mining Trust (BRWM) 492.00p -1.20%
Hill and Smith (HILS) 1,872.00p -1.16%
Harworth Group (HWG) 174.50p -1.13%
4Imprint Group (FOUR) 3,500.00p -1.13%