LONDON (ShareCast) - (Sharecast News) - London equities ended lower on Friday, reversing earlier gains as renewed trade tensions overshadowed positive domestic data.
The FTSE 100 index slipped 0.24% to close at 8,717.97 points, while the FTSE 250 declined 0.44% to 20,708.72 points.

In equity markets, sterling strengthened, last rising 0.69% on the dollar to trade at $1.3511, and edging up 0.085% against the euro, changing hands at €1.1904.

"European and US stocks reversed their early Friday gains and dropped by as much as 2% as US President Trump threatened a 50% tariff on imports from the European Union starting 1 June, and Apple with a minimum 25% tariff if the company does not move iPhone production to the US," said IG senior technical analyst Axel Rudolph.

"10-year Treasury bond yields also swiftly fell from their three-month high at 4.63% to as low as 4.45% as investors refocus on growth concerns amid rising public debt levels.

"Earlier this week, the US House narrowly passed president Trump's tax and spending bill, which could add $3.8trn to the US national debt over the next decade."

Rudolph noted that the dollar gave back all of last week's gains, and was trading at two-week lows.

"Gold safe haven inflows have provoked an over 7% rise from last week's low with new record highs above the $3,500 mark potentially being back in play, should the European Union hold fast and not succumb to renewed US tariff threats and retaliate.

"The oil price also gained amid heightened tensions in the Middle East but is nonetheless likely to end the week in negative territory."

Stocks fall on fresh Trump tariff threats, UK data provides some positive signs

Stock markets across Europe tumbled on Friday afternoon, after US president Donald Trump threatened to impose a 50% tariff on European Union goods starting 1 June, citing stalled negotiations with the bloc.

In a post on social media, Trump said talks with the EU were making no progress and warned that punitive measures could follow.

His latest outburst came shortly after he threatened to impose a tariff of at least 25% on Apple products not manufactured in the United States, putting further pressure on the tech giant.

European officials offered no immediate response, though Germany's economy minister Katharina Reiche urged de-escalation.

"Tariffs harm both sides equally," she said, stressing the need for a negotiated resolution and ongoing coordination with the European Commission.

Trump's remarks followed a partial suspension of earlier tariff hikes, part of a temporary 90-day truce in his broader trade war.

While the US reduced its "reciprocal" tariffs on EU goods earlier this month, it continued to enforce 25% duties on steel, aluminium, and car parts, and was threatening new levies on pharmaceuticals and semiconductors.

On home shores, UK economic data offered some positive signs.

Retail sales rose by 1.2% in April, outpacing forecasts of a 0.3% increase, driven by a 3.9% rebound in food store volumes.

Warmer weather contributed to higher demand at supermarkets, bakeries, and off-licences.

"Sunny skies and warm temperatures helped boost retail sales in April with strong trading across most sectors," said ONS senior statistician Hannah Finselbach.

"After a poor couple of months, food sales bounced back with supermarkets reporting robust sales, while it was also a positive month for butchers and bakers, alcohol and tobacco stores.

"Conversely, after a good March, clothing sales fell this month, although it was a brighter picture for department stores and household goods shops whose sales grew."

Separately, the GfK consumer confidence index rose three points to -20 in May, lifted by a marked improvement in personal finance expectations and a stronger economic outlook, although confidence remained below levels seen a year ago.

Neil Bellamy, consumer insights director at GfK, said consumers may have "taken comfort" from the latest interest rate reduction.

Ofgem also announced a 7% reduction in household energy bills from July, lowering the typical annual bill to £1,720.

While that would be a 28% drop from the 2023 peak, bills remained 10% higher than last year, offering limited relief to consumers facing broader cost pressures from rising taxes and utility charges.

In Germany, revised data showed the economy grew 0.4% in the first quarter of 2025, double the initial estimate.

The expansion marks a rebound from the previous quarter's contraction and the strongest quarterly performance since late 2022, suggesting a tentative recovery in the eurozone's largest economy.

AJ Bell in the green, Games Workshop slides

On London's equity markets, AJ Bell climbed 8.4% after reporting a strong interim performance.

The investment platform posted a 12% rise in pre-tax profit to £68.8m and a 17% increase in revenue, buoyed by higher recurring and transactional income.

Imperial Brands rose 1.19% following a price target upgrade from RBC Capital Markets, which raised its estimate to 2,400p from 2,100p.

The bank cited improved market share, consistent investment, and delivery against expectations as reasons for growing confidence in the company's profit outlook.

On the downside, Games Workshop fell 3.21% despite forecasting pre-tax profit of at least £255m for the full year, beating consensus estimates.

Shares slipped after the company warned that licensing revenue would not repeat last year's £50m record.

"It's been a monumental year for Games Workshop as it has delivered a string of good news around earnings and enjoyed promotion to the prestigious FTSE 100 index," said Russ Mould, investment director at AJ Bell.

"It's capped that year off with another upgrade to earnings guidance.

"There's a warning that licensing gains seen over the past 12 months won't be matched in the new financial year, which explains why the shares have pulled back on the trading update."

Watches of Switzerland dropped 4.16% amid investor jitters following US president Donald Trump's threat to impose tariffs on EU goods, raising concerns for transatlantic retail exposure.

Bloomsbury Publishing extended Thursday's sharp losses, falling a further 5.34%.

The Harry Potter publisher is under pressure after reporting a 22% drop in annual pre-tax profit to £32.5 million.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,717.97 -0.24%
FTSE 250 (MCX) 20,708.72 -0.44%
techMARK (TASX) 4,756.71 -0.37%

FTSE 100 - Risers

Anglo American (AAL) 2,199.00p 3.37%
Fresnillo (FRES) 1,123.00p 2.44%
Convatec Group (CTEC) 283.80p 2.07%
Rentokil Initial (RTO) 351.30p 1.96%
Imperial Brands (IMB) 2,803.00p 1.84%
Antofagasta (ANTO) 1,764.50p 1.34%
Land Securities Group (LAND) 604.00p 1.33%
British American Tobacco (BATS) 3,321.00p 1.24%
3i Group (III) 4,108.00p 1.23%
Auto Trader Group (AUTO) 910.00p 1.20%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 82.54p -3.03%
Prudential (PRU) 826.80p -2.87%
Games Workshop Group (GAW) 15,370.00p -2.77%
Beazley (BEZ) 925.50p -2.63%
Mondi (MNDI) 1,183.00p -2.51%
Vodafone Group (VOD) 76.76p -2.31%
Marks & Spencer Group (MKS) 373.50p -2.29%
Diploma (DPLM) 4,644.00p -2.27%
Hiscox Limited (DI) (HSX) 1,265.00p -2.02%
International Consolidated Airlines Group SA (CDI) (IAG) 320.20p -2.02%

FTSE 250 - Risers

AJ Bell (AJB) 495.60p 8.40%
Hochschild Mining (HOC) 289.60p 6.71%
Endeavour Mining (EDV) 2,248.00p 3.29%
W.A.G Payment Solutions (WPS) 60.00p 2.68%
Future (FUTR) 675.50p 1.89%
HICL Infrastructure (HICL) 113.60p 1.79%
Harbour Energy (HBR) 171.70p 1.71%
Genus (GNS) 2,005.00p 1.60%
Travis Perkins (TPK) 623.50p 1.53%
Mobico Group (MCG) 27.40p 1.44%

FTSE 250 - Fallers

Bloomsbury Publishing (BMY) 500.00p -5.34%
SSP Group (SSPG) 169.00p -4.81%
Tate & Lyle (TATE) 550.00p -4.80%
Johnson Matthey (JMAT) 1,744.00p -4.68%
Watches of Switzerland Group (WOSG) 391.60p -4.16%
4Imprint Group (FOUR) 3,400.00p -3.15%
Rank Group (RNK) 122.20p -2.72%
Oxford Instruments (OXIG) 1,804.00p -2.71%
Trustpilot Group (TRST) 232.00p -2.62%
RS Group (RS1) 554.50p -2.55%

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