FTSE Futures Jump After Trump Delays EU Tariffs

FTSE futures rose sharply on Tuesday after Donald Trump reversed plans to impose 50% tariffs on European Union goods, easing immediate trade concerns. The dollar remained under pressure, trading near a one-month low and on course for a fifth straight monthly decline. Nvidia is set to report first-quarter results on Wednesday, with expectations for a 65.9% revenue increase and focus on new AI chip sales to China.

Equities

The FTSE 100 fell 0.2% on Friday, weighed down by renewed trade tensions after Donald Trump called for 50% tariffs on European goods. Despite this, the index managed to record a second straight weekly gain. Sterling strengthened to its highest level in over three years, putting further pressure on the FTSE’s internationally exposed constituents. The FTSE 250 dropped 0.4%, marking its first weekly decline in seven weeks.

Among individual UK stocks, AJ Bell rose 8.4% after reporting a 12% year-on-year increase in half-year profits, driven by higher client activity. Marks & Spencer slipped 2.3% after reports that its insurers may take a full loss on a £100 million policy following recent cyberattacks, prompting concerns over insurance renewal costs. Games Workshop dropped 2.8% after analysts at Peel Hunt forecast that Trump’s tariff proposals could cost the company around £10 million, leading to a downgrade. The mining sector offered some support to the broader market, with the FTSE 350 Mining Index climbing 3.5% as gold prices rose.

In the US, the S&P 500 lost 0.67% on the day and fell 2.61% over the week. The Dow Jones dropped 0.61% on Friday, down 2.47% for the week, while the Nasdaq fell 1% on the day and 2.48% for the week. Losses were largely concentrated in technology, communications, and consumer discretionary shares.

Apple declined 3%, hitting a two-week low, after Trump warned that iPhones sold in the US but manufactured abroad could face 25% tariffs. Deckers Outdoor slumped nearly 20% after the UGG maker issued weaker-than-expected first-quarter sales guidance and withheld annual targets, citing tariff-related uncertainty. Nike fell 2.1% amid broader weakness in consumer stocks.

Amazon, Nvidia, and Meta all lost more than 1%, while Tesla ended down 0.5%. Semiconductor stocks fell 1.5%, and the CBOE Volatility Index rose 10%, hitting its highest level in over two weeks. US Treasury yields eased, with the 10-year note falling 4.4 basis points to 4.509% after spiking earlier in the week.

Forex & Commodities

The US dollar slipped on Tuesday, extending a run of weakness, as investors reacted to growing concerns around a $3.8 trillion tax and spending bill currently being debated in the Senate. The bill, passed by the House of Representatives last week, is expected to add significantly to the US’s $36.2 trillion debt burden. The dollar index was down 0.1%, falling for the third consecutive session, while the yen rose 0.3% to 142.39 after the Bank of Japan signalled its willingness to keep raising interest rates in response to inflation.

The euro edged 0.1% higher to $1.1397, trading near a one-month high, after President Trump delayed a threatened 50% tariff on EU imports. European Central Bank President Christine Lagarde said the single currency could become a stronger global alternative if the bloc improves its financial and security infrastructure. Sterling was little changed at $1.3571. The New Zealand dollar, which had touched a six-month high on Monday, slipped 0.1% to $0.5994 ahead of Wednesday’s RBNZ meeting, where a rate cut to 3.25% is widely expected.

Gold fell 0.8% to $3,332.04 an ounce after Trump pushed back the EU tariff deadline to 9 July, reducing immediate demand for safe-haven assets. US gold futures dropped 1%. Despite the short-term pullback, Citi upgraded its short-term gold price target to $3,500, citing US trade policy and geopolitical tensions. Spot silver eased 0.3% to $33.38, while platinum and palladium each fell 0.6%.

Brent crude fell 0.4% to $64.50 a barrel, while WTI dropped 0.5% to $61.24. Traders anticipate OPEC+ will announce a July output increase at meetings later this week.