Weir Group PLC (WEIR)

(Alliance News) - Stocks in London closed mostly higher on Thursday as investors weighed earnings and kept an eye on the latest developments in the US' trade dispute with China.

"It was a fairly muted day for UK stocks which isn't a bad thing given the wild swings we've seen on financial markets in recent weeks," said Danni Hewson, head of financial analysis at AJ Bell.

The FTSE 100 index rose 4.26 points, 0.1%, to 8,407.44, extending its winning streak to nine days in its best run since 2019. The FTSE 250 firmed 21.32 points, 0.1%, at 19,504.37, but the AIM All-Share fell 6.70 points, 1.0%, at 669.78.

The Cboe UK 100 edged up 0.1% at 837.40, the Cboe UK 250 gained 0.3% at 17,049.19, while the Cboe Small Companies eased 0.1% at 15,294.53.

In Paris, the CAC 40 ended up 0.3%, while Frankfurt's DAX 40 climbed 0.5%.

At the time of the London close, the Dow Jones Industrial Average traded 0.7% higher, the S&P 500 rose 1.3%, and the Nasdaq Composite advanced 1.9%.

Alongside, a barrage of earnings in Europe and across the pond, investors kept one eye on ongoing tit-for-tat comments between the US and China and hopes the US could strike a deal with India as the tariff fall-out continues.

The Economic Times quoted US Treasury Secretary Scott Bessent as saying India could become the first country to strike a bilateral trade deal under Donald Trump's reciprocal tariffs.

Speaking to reporters in Washington, Bessent said talks with India were "very close" to a breakthrough, the Economic Times said.

Meanwhile, China called on the US to "completely cancel all unilateral tariff measures" if it wants trade talks, and also said there are "currently no economic and trade negotiations between China and the US", despite recent signs of softening from Washington.

"The unilateral tariff measures were initiated by the US," said He Yadong, a Chinese commerce ministry spokesperson. "If the US truly wants to solve the problem, it should...completely cancel all unilateral tariff measures against China and find a way to resolve differences through equal dialogue."

On Tuesday, US President Donald Trump said tariffs would come down "substantially" and a deal would be done "pretty quickly".

But the Chinese foreign ministry on Thursday said any reports that China and the US were nearing a deal were "fake news".

Also, investors across the pond took some heart from comments from a Fed official that US rates could be cut in response to slower economic growth.

Fed Bank of Cleveland President Beth Hammack told CNBC that officials could move on rates as early as June if it has clear evidence of the economy's direction.

Against the yen, the dollar was trading higher at JPY142.72 on Thursday at the London equities close compared to JPY142.42 on Wednesday. The pound also traded higher at USD1.3292 compared to USD1.3274 on Wednesday.

The euro, however, stood lower at USD1.1351 on Thursday against USD1.1367 on Wednesday.

In London, Weir Group rose 4.5% after a well-received trading update.

The Glasgow, Scotland-based engineering company said it has made a "strong start to the year", and that "mining markets are positive, and the business is executing well".

Group orders rose 5% in the first quarter year-on-year on a constant currency basis, Weir said. As a result, Weir said it currently sees full year trading in line with expectations for growth in constant currency revenue, operating profit and operating margin.

The firm said it expects to be able to mitigate the effect of trade tariffs on guidance, albeit the broader economic impact of current US trade policy remains uncertain.

Unilever ended down 0.3% as it reported modest organic sales growth in the first quarter of 2025 and prepared for the spin-off of its Ice Cream business.

The London-based consumer products firm, which owns brands such as Persil detergent, Dove soap and Hellmann's mayonnaise, said organic sales grew 3.0% in the first quarter of 2025. This beat the company-compiled consensus of 2.8%.

Organic sales growth was driven by both volume and price, but market conditions were more challenging than in the prior year, Unilever said.

Unilever said it is on track to complete the separation of Ice Cream in the fourth quarter of 2025.

The new business will be called Magnum Ice Cream Co and is expected to operate on a standalone basis from July 1. In addition to Magnum, the Ice Cream division includes Wall's and Ben & Jerry's.

The business will be incorporated in the Netherlands and will continue to be headquartered in Amsterdam. Like Unilever itself, Magnum will be listed in Amsterdam, London and New York.

In the red were lenders HSBC, down 2.0%; Barclays, down 1.4%; NatWest, down 1.2%; and Lloyds, down 0.8%.

"Reporting season for UK banks is just around the corner and investors are thinking hard about the prospect of a choppy second half to the year.

"The big lenders might seek to reassure about their financial solidity and preparedness for any macroeconomic bumps that come their way, even if it is probably too early in the year for management to change the assumptions that underpin their guidance for 2025," AJ Bell's Hewson noted.

On the FTSE 250, Inchcape fell 6.8% after reporting that revenue was down 5% at constant currency to GBP2.1 billion in the first quarter.

The company noted that headwinds continued in several key markets in the Asia Pacific, while in Europe & Africa, lower revenues were driven by order bank unwind.

Gold gained ground, trading at USD3,324.20 an ounce on Thursday against USD3,273.46 on Wednesday.

Brent oil was quoted higher late on Thursday in London at USD66.10 a barrel, against USD65.74 late on Wednesday.

The global economic diary on Friday has UK retail sales and consumer confidence data, and Canadian retail sales figures.

The domestic corporate calendar on Friday has a trading statement from advertising group WPP and bookmaker Evoke.

By Jeremy Cutler, Alliance News reporter

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