London midday: Stocks flat after data slew; defence firms rally
By Michele Maatouk
Date: Monday 02 Jun 2025
(Sharecast News) - London stocks had pared earlier small losses to trade flat by midday on Monday as investors digested a raft of UK data releases amid renewed trade tensions between the US and China.
The FTSE 100 was steady at 8,770.75.
Sentiment took a hit after Trump said on Friday that he was planning to double tariffs on steel and aluminium imports to 50% from this week. He also said that China had violated the Geneva trade agreement.
China hit back, accusing the Trump administration of "seriously violating" its trade deal with the US, saying that it had introduced multiple "discriminatory restrictive" measures.
These include issuing guidance on AI chip export controls, stopping sales of chip design software to China and revoking visas for its students.
China's Commerce Ministry said: "The US government has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations.
"If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests."
Russ Mould, investment director at AJ Bell, said: "Donald Trump has upset markets once again.
"Doubling import taxes on steel and aluminium, and aggravating China once again, mean we face a situation where uncertainty prevails. Trump's continuous moving of the goal posts is frustrating for businesses, governments, consumers and investors.
"Equity markets were down across Europe and Asia, with futures prices implying a similar pattern when Wall Street opens for trading on Monday. Unsurprisingly, gold got a boost as investors returned to safe-haven assets."
On home shores, a survey showed the manufacturing sector continued to struggle in May, weighed down by faltering client confidence, higher costs and ongoing trade uncertainties.
The S&P Global UK manufacturing PMI rose to a three-month high of 46.4 last month, from 45.4 in April and above the flash estimate of 45.1.
However, the sector remains in contraction. A reading above the neutral 50.0 benchmark indicates growth but one below it suggests contraction.
Elsewhere, figures from the Bank of England showed that mortgage approvals fell sharply in April after changes to stamp duty thresholds came into effect.
According to the latest money and credit report, net mortgage approvals for house purchases - an indicator of future borrowing - fell for the third consecutive month, by 3,100 to 60,500 in April.
Analysts had been expecting a more modest decline to 63,000.
Net borrowing of mortgage debt also tumbled, sliding £13.7bn to -£0.8bn and reversing March's £9.6bn net increase.
Changes to stamp duty thresholds came into effect on 1 April, leading to a spike in deals as home buyers rushed to complete ahead of the deadline.
Earlier, data from Nationwide showed that house priced edged higher in May despite wider economic uncertainties.
In equity markets, defence firms were among the top performers, with Babcock, BAE Systems, Rolls-Royce and Qinetiq all up sharply after the UK government pledged to build up to 12 attack submarines as part of AUKUS programme.
Russ Mould said investors were targeting "an industry with a clear earnings tailwind".
Silver and gold miner Fresnillo and gold miner Endeavour Mining both shone as the price of the yellow metal rose.
Aberdeen rallied after an upgrade to 'buy' from 'neutral' at Goldman Sachs, which said the recent investor focus has centred disproportionately on the underperforming asset management unit.
Vodafone edged lower after it and CK Hutchison Holdings said the merger of telecoms firms Vodafone UK and Three UK successfully completed on 31 May.
Market Movers
FTSE 100 (UKX) 8,770.75 -0.02%
FTSE 250 (MCX) 20,996.61 -0.15%
techMARK (TASX) 4,853.20 -0.26%
FTSE 100 - Risers
Babcock International Group (BAB) 1,014.00p 8.33%
Fresnillo (FRES) 1,207.00p 3.78%
BAE Systems (BA.) 1,936.50p 1.84%
International Consolidated Airlines Group SA (CDI) (IAG) 331.70p 1.72%
Shell (SHEL) 2,479.00p 1.20%
Hiscox Limited (DI) (HSX) 1,276.00p 1.19%
GSK (GSK) 1,522.00p 1.00%
BP (BP.) 363.25p 0.97%
Unite Group (UTG) 869.00p 0.93%
M&G (MNG) 238.50p 0.76%
FTSE 100 - Fallers
Anglo American (AAL) 2,212.00p -11.65%
Flutter Entertainment (DI) (FLTR) 17,935.00p -4.32%
WPP (WPP) 580.60p -3.14%
Ashtead Group (AHT) 4,233.00p -2.35%
Melrose Industries (MRO) 459.40p -1.86%
Diploma (DPLM) 4,600.00p -1.84%
Croda International (CRDA) 3,022.00p -1.50%
Spirax Group (SPX) 5,625.00p -1.49%
JD Sports Fashion (JD.) 82.90p -1.45%
DCC (CDI) (DCC) 4,576.00p -1.29%
FTSE 250 - Risers
QinetiQ Group (QQ.) 524.50p 5.49%
Me Group International (MEGP) 220.00p 2.56%
Endeavour Mining (EDV) 2,306.00p 2.40%
Sirius Real Estate Ltd. (SRE) 97.25p 2.36%
Harbour Energy (HBR) 181.90p 2.19%
Abrdn (ABDN) 177.40p 2.19%
Chemring Group (CHG) 493.50p 2.17%
Syncona Limited NPV (SYNC) 81.00p 2.00%
Elementis (ELM) 145.60p 1.96%
Mitchells & Butlers (MAB) 291.00p 1.93%
FTSE 250 - Fallers
Raspberry PI Holdings (RPI) 493.10p -5.81%
Oxford Nanopore Technologies (ONT) 118.50p -3.97%
Ocado Group (OCDO) 253.40p -3.72%
Dr. Martens (DOCS) 57.55p -3.44%
4Imprint Group (FOUR) 3,455.00p -2.68%
WH Smith (SMWH) 1,020.00p -2.58%
Watches of Switzerland Group (WOSG) 419.60p -2.19%
Wizz Air Holdings (WIZZ) 1,562.00p -2.13%
Bytes Technology Group (BYIT) 514.50p -2.00%
Coats Group (COA) 76.80p -1.90%
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