London’s blue chip index outperformed its peers in Paris and Frankfurt at the open on Tuesday after the long Easter weekend, as gold reached a new record high amid a weakening dollar.
The FTSE 100 index opened up 11.41 points at 8,287.07. The FTSE 250 was down 54.96 points, 0.3%, at 19,195.05, and the AIM All-Share was up 3.46 points, 0.5%, at 672.40.
The Cboe UK 100 was down 0.3% at 821.98, the Cboe UK 250 was 0.5% lower at 16,768.70, and the Cboe Small Companies was up 0.1% at 15,231.39.
Gold was quoted up at $3,469.40 an ounce against $3,296.43 late Thursday. The yellow metal hit a high of $3,500.12 earlier on Tuesday morning.
‘In my view, this [gold] rally reflects ongoing recession fears in the US economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell. These attacks have raised concerns about the independence of monetary policy, pushing investors toward gold as a store of value in uncertain times,’ commented XS.com analyst Rania Gule.
‘From a fundamental perspective, I expect gold to remain supported in the near term, as markets still lack strong economic catalysts from the US, leaving prices vulnerable to shifts in investor sentiment and political headlines. The fact that the Relative Strength Index remains in overbought territory suggests that bullish momentum is still strong, albeit stretched, supporting the ’buy-the-dip‘ narrative especially amid growing distrust in US monetary policy and mounting trade tensions.’
The pound was quoted up at $1.3396 early on Tuesday in London, compared to $1.3259 at the equities close on Thursday. The euro stood higher at $1.1506, against $1.1374.
Against the yen, the dollar was trading lower at JP¥140.30 compared to JP¥142.19.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average faded 2.5%, the S&P 500 was 2.4% lower and the Nasdaq Composite was down 2.6%.
US President Donald Trump and his administration are studying whether dismissing independent Federal Reserve Chair Jerome Powell is an option, his top economic aide said on Friday.
Trump previously insisted that he could force out the Federal Reserve leader, lashing out after Powell warned of tariffs-fuelled inflation. In a scathing post on Truth Social, Trump repeated a demand for Powell to lower interest rates, saying his ‘termination...cannot come fast enough’.
The US president does not have direct authority to fire Federal Reserve governors, but Trump could initiate a lengthy process to attempt to unseat Powell by proving there was ‘cause’ to do so.
In European equities on Tuesday, the CAC 40 in Paris faded 0.6%, while the DAX 40 in Frankfurt fell 0.3%.
ITM Power was up 14% at London’s market open on Tuesday.
The designer and manufacturer of electrolyser systems for green hydrogen production now expects revenue between £25.5 million and £26.5 million for its financial year due to end April 30, up at least 55% from £16.5 million the year before and up around 30% from its prior £18 million to £22 million guidance range.
The upgrade was due to ‘additional contractual obligations having been fulfilled and associated revenue now recognised’, the firm said.
ITM Power noted it has been cash generative in the second half of financial 2025, anticipating cash at the year-end between £204 million and £205 million. Its adjusted loss before interest, tax, depreciation and amortisation forecast remains unchanged at £32 million to £36 million, against £30.4 million a year prior.
Hutchmed China climbed 11%.
The Hong Kong-based biopharmaceutical firm said it has now completed the enrolment of the registration phase of its phase 2 trial of savolitinib in gastric cancer patients.
The trial intends to evaluate the efficacy, safety and tolerability of savolitinib in treating gastric cancer or gastroesophageal junction adenocarcinoma patients with MET amplification. A total of 64 patients have been enrolled in the study.
If results are positive, Hutchmed said it may apply for marketing authorisation for savolitinib for gastric cancer in China in late 2025.
At the other end, Oracle Power tumbled 19%.
The Australia and Pakistan-focused minerals and power projects developer said it has raised gross proceeds of £318,600 through a placing of 1.77 billion new shares at 0.018 pence each. The funds will be used to progress the development of its projects and for general working capital purposes.
In Asia on Tuesday, the Nikkei 225 index in Tokyo fell 0.2%. In China, the Shanghai Composite edged up 0.3%, while the Hang Seng index in Hong Kong climbed 0.3%. The S&P/ASX 200 in Sydney closed up 0.7%.
The US on Monday announced its intention to impose tariffs of up to 3,521% on solar panels from Southeast Asia, a move aimed at countering alleged Chinese subsidies and dumping in the sector.
The tariffs on companies from Cambodia, Thailand, Malaysia and Vietnam will still need to be ratified at a meeting of the International Trade Commission in June.
Brent oil was quoted down at $66.92 a barrel early in London on Tuesday from $67.52 late Thursday.
UK Prime Minister Keir Starmer will aim to strengthen the UK’s defence ties with New Zealand as he hosts the country’s prime minister on Tuesday.
Starmer and his counterpart, Christopher Luxon, are expected to visit a military base to see British and New Zealand personnel train Ukrainian troops as part of the UK’s Operation Interflex.
More than 54,000 Ukrainians have already received training under Operation Interflex, and Luxon is expected to confirm on Tuesday that New Zealand will extend its support for the programme to the end of the year.
The pair will also instruct their respective defence ministers to begin work on a new defence partnership between the UK and New Zealand, replacing the one signed in 2015.
Still to come on Thursday’s economic calendar, the US Redbook index at 1355 BST and eurozone consumer confidence at 1500 BST.
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