London midday: FTSE dips as UK GDP disappoints, amid trade worries
By Michele Maatouk
Date: Thursday 12 Jun 2025
(Sharecast News) - London stocks had dipped into the red by midday on Thursday amid ongoing trade concerns and after the release of disappointing UK GDP data.
The FTSE 100 was down 0.1% at 8,852.87.
Joshua Mahony, chief market analyst at Rostro, pointed to growing worries that we could soon see the trade war break out once again.
"Despite Bessent's prediction that many of the reciprocal tariff delays will be extended on 9 July, President Trump subsequently announced plans to send letters setting out unilateral tariff rates to key trading partners," he said.
"The decision on whether nations will be granted an extended reprieve comes down to the perception over whether they appear to be approaching trade talks in good faith. For EU nations this is a concern given the tumultuous relationship they have had with Trump since he took office for the second time."
On home shores, figures from the Office for National Statistics showed the economy contracted more than expected in April as higher taxes and Trump's tariffs took their toll.
The economy shrank 0.3% following 0.2% growth in March. Economists were expecting a contraction of 0.1%.
Monthly services output fell 0.4% in April following 0.4% growth the month before, and was the largest contributor to the fall in monthly GDP.
Production output shrank 0.6% in April following a 0.7% contraction in March, while construction output grew 0.9% following growth of 0.5% in March.
ONS director of economic statistics Liz McKeown said: "The economy contracted in April, with services and manufacturing both falling. However, over the last three months as a whole GDP still grew, with signs that some activity may have been brought forward from April to earlier in the year.
"Both legal and real estate firms fared badly in April, following a sharp increase in house sales in March when buyers rushed to complete purchases ahead of changes to stamp duty. Car manufacturing also performed poorly after growing in the first quarter of the year."
Separate data from the ONS showed that the value of goods exports fell by £2.7bn, or 8.8% in April 2025, with falls in exports to both the EU and non-EU countries.
Exports of goods to the US fell by £2bn, which the ONS said was "likely linked" to the implementation of tariffs on goods imported there. This was the largest monthly decrease since records began in January 1997 and followed four months of consecutive increases.
Investors were also mulling the latest residential market survey from the Royal Institution of Chartered Surveyors, which showed that house prices weakened in May as consumer sentiment faltered.
In equity markets, Halma surged as the safety equipment firm reported record revenues and profits for the 12 months to 31 March, with both rising by double-digit percentages, and lifted its dividend by 7%.
Tesco rose as it posted a 4.6% jump in first-quarter like-for-like sales and an increase in its markets, and held its full-year guidance.
Housebuilder Crest Nicholson nudged higher as it held annual guidance after a rise in adjusted half-year earnings amid an easing in mortgage costs as interest rates fall.
Market Movers
FTSE 100 (UKX) 8,852.87 -0.13%
FTSE 250 (MCX) 21,280.55 -0.69%
techMARK (TASX) 5,097.57 -0.11%
FTSE 100 - Risers
Halma (HLMA) 3,152.00p 4.37%
BT Group (BT.A) 187.40p 3.65%
Tesco (TSCO) 396.40p 2.88%
Fresnillo (FRES) 1,412.00p 1.73%
Vodafone Group (VOD) 73.48p 1.55%
Kingfisher (KGF) 276.90p 1.43%
Sainsbury (J) (SBRY) 286.40p 1.42%
Imperial Brands (IMB) 2,913.00p 1.32%
Marks & Spencer Group (MKS) 371.90p 1.22%
BP (BP.) 377.80p 1.12%
FTSE 100 - Fallers
Intermediate Capital Group (ICG) 1,950.00p -4.51%
International Consolidated Airlines Group SA (CDI) (IAG) 326.60p -3.80%
easyJet (EZJ) 560.60p -3.51%
JD Sports Fashion (JD.) 77.88p -3.04%
CRH (CDI) (CRH) 6,650.00p -3.03%
Melrose Industries (MRO) 467.40p -2.97%
Rolls-Royce Holdings (RR.) 871.00p -2.51%
Mondi (MNDI) 1,196.50p -2.45%
InterContinental Hotels Group (IHG) 8,390.00p -2.44%
Smurfit Westrock (DI) (SWR) 3,152.00p -2.41%
FTSE 250 - Risers
PayPoint (PAY) 786.00p 3.42%
ITV (ITV) 81.70p 3.09%
Ithaca Energy (ITH) 154.20p 2.39%
FirstGroup (FGP) 222.40p 2.11%
Endeavour Mining (EDV) 2,278.00p 1.88%
CMC Markets (CMCX) 264.00p 1.73%
Burberry Group (BRBY) 1,119.00p 1.31%
IG Group Holdings (IGG) 1,083.00p 1.21%
Great Portland Estates (GPE) 346.00p 1.17%
Pennon Group (PNN) 501.00p 1.05%
FTSE 250 - Fallers
Ferrexpo (FXPO) 47.30p -4.35%
Oxford Nanopore Technologies (ONT) 119.50p -4.32%
RS Group (RS1) 559.50p -3.87%
SDCL Efficiency Income Trust (SEIT) 47.30p -3.86%
Carnival (CCL) 1,553.50p -3.78%
Aston Martin Lagonda Global Holdings (AML) 85.00p -3.41%
Dr. Martens (DOCS) 76.60p -3.34%
Mobico Group (MCG) 26.42p -3.29%
THG (THG) 24.54p -3.23%
Raspberry PI Holdings (RPI) 475.50p -3.16%
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