Closing summary
After another hectic week, it’s time to wrap up with a quick recap.
Thousands of UK customers suffered online banking problems today, with reports of trouble accessing internet and app services.
Lloyds, its Halifax and Bank of Scotland divisions, plus Nationwide, First Direct and TSB all reported problems with their online banking systems.
And after a day of work, five of the services have been restored – with TSB still reporting ‘intermittent’ problems with its internet and mobile banking.
Stock markets have been buffered by trade war worries, with heavy losses in Asia-Pacific markets overnight.
But the UK’s FTSE 100 has avoided the gloom, gaining 0.6% today, with analysts hopeful Britain can avoid being hit by new US tariffs, and could strike a trade deal with the US.
The existing threat of tariffs on imports from China, Canada and Mexico are worrying investors, and may also have driven a surge in imports to the US last month. The US trade in goods deficit widened sharply in January, seemingly as businesses tried to stock up on raw materials, parts and finished products before tariffs come in.
More encouragingly, the US PCE inflation index has eased a little.
In other news:
UK is now 'the golden child of Europe' as stocks rally in London
After a shaky start, Britain’s blue-chip share index has closed higher tonight, outpacing other European indices.
While trade war fears hit markets across the Asia-Pacific region, and on continental Europe, the FTSE 100 share index has closed 0.6% higher in London tonight, up 53.5 points at 8809 points.
That’s only 11 points short of the record high set by the FTSE 100 earlier this month.
Investors appear to be hoping that Britain can avoid incurring new tariffs imposed by Donald Trump, following Keir Starmer’s successful trip to the White House yesterday, where the US president suggested the two countries could agree a free trade deal.
Kathleen Brooks, research director at XTB, points out that the UK has one advantage – it doesn’t run a large trade surplus with the US, adding:
Combined with Trump’s fondness for the UK, and another invitation for a state visit at Buckingham Palace, this means that the UK is now the golden child of Europe. This is reflected in the UK’s asset prices: the FTSE 100 is higher on Friday as hopes grow for a quick trade deal with the US. The UK is also expected to avoid tariffs, after a successful trip to the US by PM Kier Starmer. The FTSE 350 is also resilient and is rising today, whereas European indices are mostly a seas of red.
The pound is the most resilient performer vs. the USD so far this week, while UK bonds have underperformed US bonds this week (US Treasury yields have fallen by more than UK Gilt yields), UK Gilts are performing well vs. the rest of Europe.
In contrast, Germany’s DAX was down 0.15% in late trading, and France’s CAC index was slightly lower.
As we covered this morning, stocks slumped in China, Japan and South Korea overnight after Trump declared new 10% tariffs on Chinese imports would be imposed next week.
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