London open: Stocks jump on trade deal optimism, amid earnings deluge
By Michele Maatouk
Date: Thursday 24 Jul 2025
(Sharecast News) - London stocks rose in early trade on Thursday after the US struck a trade deal with Japan and amid optimism over a US-EU trade deal, as investors waded through a deluge of earnings news.
At 0835 BST, the FTSE 100 was up 0.6% at 9,113.79.
Sentiment got a boost after the US announced a trade deal with Japan that includes a 15% tariff rate - rather than the 25% threatened - and $550bn in investments.
Meanwhile, there were reports the EU is close to agreeing a similar trade deal of 15% tariffs on imports from the bloc.
Stephen Innes, managing partner at SPI Asset Management, said: "The EU, by all accounts, is sprinting toward an agreement that would sidestep a trade war with the US, while Treasury Secretary Bessent fanned the flames of optimism with hints of China progress.
"The tariff average settling at 15% - if achieved - would be seen as damage control rather than destruction. Markets, ever forward-looking, are repositioning for a softer landing."
On home shores, a survey showed that consumer sentiment softened in July, as rising prices undermined confidence.
According to data from the British Retail Consortium's latest consumer sentiment monitor, expectations for state of the economy over the next three months eased to -33 from -28 in June.
The personal financial situation also worsened, down two points to -7, while saving edged up -3 from -4.
Expectations for spending overall, meanwhile, rose to 16 from 12, and on retail specifically to 3 from 2.
The UK economy is battling sluggish growth alongside an uptick in inflation.
The consumer price index now stands at 3.6%, ahead of the Bank of England's long-term target of 2%. Food price inflation is rising even more sharply, however, reaching 5.2% in the four weeks to 13 July, according to recent data from Worldpanel by Numerator.
As a result, interest rates remain elevated. The BoE has cut the cost of borrowing only twice this year, to 4.25%, although another reduction is widely expected next month.
Helen Dickinson, chief executive at the BRC, said: "It is little surprise that consumer confidence fell in July.
"Rising inflation, particularly for food, has put more pressure on personal finances, increasing the cost of living. This has caused spending expectations to rise, particularly for groceries, as households anticipate higher prices at the till."
Among individual categories, consumers expected spending to rise most notably in food and groceries, up from 20 in June to 25.
In equity markets, Reckitt shot to the top of the FTSE 100 as it upgraded the full-year revenue growth target for its core brands, posting a better-than-expected jump in second-quarter like-for-like sales.
The consumer goods giant it is now targeting LFL net revenue growth above 4% in Core Reckitt for FY25, up from a previous target of 3% to 4% growth. The core segment includes brands such as Nurofen and Dettol.
Airtel Africa surged as it said EBITDA grew by 29.8% to $679m in the first quarter, with revenues up 24.9%.
BT Group was also in the black as it said pre-tax profit fell 10% in the three months to 30 June, but insisted it was on track to deliver its targets for "this year, next year and the end of the decade".
Howden Joinery rallied as it posted an increase in first-half sales and profits, while ITV and IG Group also advanced after results.
On the downside, Lloyds lost ground even as it backed its outlook for the year and lifted its dividend as it reported a jump in first-half profits.
3i Group, Vesuvius and Wizz Air were also weaker after results.
Market Movers
FTSE 100 (UKX) 9,113.79 0.58%
FTSE 250 (MCX) 22,053.34 0.18%
techMARK (TASX) 5,223.23 0.47%
FTSE 100 - Risers
Reckitt Benckiser Group (RKT) 5,494.00p 8.41%
Airtel Africa (AAF) 190.00p 5.68%
BT Group (BT.A) 206.90p 3.66%
Barclays (BARC) 357.80p 1.78%
AstraZeneca (AZN) 10,816.00p 1.37%
Standard Chartered (STAN) 1,344.50p 1.36%
St James's Place (STJ) 1,197.00p 1.35%
Smith & Nephew (SN.) 1,172.00p 1.34%
HSBC Holdings (HSBA) 959.00p 1.18%
Ashtead Group (AHT) 4,917.00p 1.09%
FTSE 100 - Fallers
SSE (SSE) 1,859.00p -2.67%
3i Group (III) 4,317.00p -0.83%
Unite Group (UTG) 788.00p -0.63%
Pershing Square Holdings Ltd NPV (PSH) 4,224.00p -0.61%
British American Tobacco (BATS) 3,824.00p -0.47%
Next (NXT) 12,010.00p -0.41%
Fresnillo (FRES) 1,450.00p -0.41%
Relx plc (REL) 3,887.00p -0.39%
Smurfit Westrock (DI) (SWR) 3,493.00p -0.37%
Marks & Spencer Group (MKS) 351.10p -0.37%
FTSE 250 - Risers
Howden Joinery Group (HWDN) 911.00p 9.04%
ITV (ITV) 82.75p 6.77%
IG Group Holdings (IGG) 1,104.00p 4.25%
Indivior (INDV) 1,257.00p 3.20%
Oxford Nanopore Technologies (ONT) 194.00p 3.08%
AJ Bell (AJB) 532.00p 2.80%
Barr (A.G.) (BAG) 728.00p 2.54%
JPMorgan Indian Investment Trust (JII) 1,080.00p 2.08%
Aston Martin Lagonda Global Holdings (AML) 82.45p 1.79%
Genuit Group (GEN) 399.00p 1.79%
FTSE 250 - Fallers
Vesuvius (VSVS) 351.00p -10.26%
Wizz Air Holdings (WIZZ) 1,021.00p -4.99%
Pennon Group (PNN) 510.50p -4.13%
Telecom Plus (TEP) 1,930.00p -3.01%
Pagegroup (PAGE) 264.60p -2.51%
Supermarket Income Reit (SUPR) 77.30p -2.40%
PPHE Hotel Group Ltd (PPH) 1,590.00p -2.21%
FirstGroup (FGP) 215.00p -2.18%
Impax Environmental Markets (IEM) 381.50p -2.18%
Spirent Communications (SPT) 193.00p -1.83%
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