Daily market update: European stocks, Saga, Assura

“Yesterday’s fragile recovery in stocks has been shattered by renewed selling as reciprocal tariffs on what the Trump administration regards as the ‘worst offenders’ comes into effect,” says AJ Bell Investment Director Russ Mould.

“Investors had initially taken some positives from a willingness in the White House to negotiate with Japan and Israel but an escalation with China triggered another sell-off on financial markets. US consumers buy a lot of goods from China, so the 104% tariff could stoke inflation big time.

“Investors are looking for any indication that the US government might blink in the face of the turmoil. For now, there are no signs of a willingness to back down or hit pause on tariffs. The longer the situation persists, the harder and more complex it will be to unpick.

“A trend which will be watched closely is an apparent loss, whether temporary or otherwise, of US assets’ safe-haven status. Treasuries sold off heavily amid some speculation China and other parties are dumping their holdings as a retaliatory tool. The dollar also remains under the cosh.

“Government bonds in the UK and across Europe were under pressure too and market weakness was apparent among names which had been spared the worst of the selling thus far with the pharmaceutical sector taking its medicine.

“Gold prices were back on the march after losing some of their shine in the initial stages of this sell-off and this helped to give precious metal miners a lift.

“Shares in over-50s lifestyle group Saga were flat in a rising market as underlying profit grew more than expected in the year to the end of January, buoyed by its travel business.

“The company is still in the process of reshaping its operations following the sale of its insurance underwriting arm and it will hope the recent turbulence in the global economy doesn’t knock it off course.

“Primary Health Properties’ attempt to buy its GP landlord peer Assura looks set to fail, as the latter agreed to a rival £1.6 billion bid from private equity firm KKR. Primary Health Properties hoped it could entice Assura into accepting its deal despite the lower headline price, on the basis a combination would make strategic sense. However, money has talked in the end and Primary Health Properties will have to dig deeper if it wants to get in ahead of KKR.”

These articles are for information purposes only and are not a personal recommendation or advice.