London stocks were set to fall at the open on Monday as the 9 July US tariff deadline looms.
The FTSE 100 was called to open around 20 points lower after US President Donald Trump threatened to impose a new 10% tariff on any country that aligns itself with the “anti-American” BRICS group.
He wrote on his Truth Social site: “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!”
Rabobank said: “In a very polite (if somewhat quaint) gesture the USA is today set to send letters to trading partners informing them of the tariff rates that will apply to goods exported into the US market.
“Donald Trump says that recipients can expect a number anywhere from 10-70%, which seems to suggest that some might face higher tariffs than were announced on April 2nd. Scott Bessent implied over the weekend that the tariffs may come into effect in August, rather than this week.
“Some countries may be given two numbers – as was the case for Vietnam – to apply lower tariffs on locally produced goods and higher tariffs on goods transhipped from China. Obviously, China would not be pleased by this and has already responded to the US-Vietnam deal through a Ministry of Commerce spokesman who said China ‘will take resolute countermeasures to safeguard its legitimate rights and interests’.
“This as the FT today reports on the scale of Chinese transshipping that is already occurring via South East Asia and the EU.
“This places many economies in Asia and Europe in the precarious situation of either offending China by agreeing to US trade proposals to economically isolate China, or offending the USA by not agreeing to them.”
On home shores, investors will be mulling the latest data from Halifax, which showed that house prices were flat on the month in June, following a 0.3% dip in May.
On the year, house prices were up 2.5% last month, down from 2.6% growth in May.
The average price of a property stood at £296,665 in June, down from £296,782 the month before.
Amanda Bryden, head of Mortgages at Halifax, said: “The market’s resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That’s being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.
“Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we’ve already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they wouldn’t have qualified for before.
“Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening.
“But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year.”
In corporate news, hospitality group SSP said it has opened public bidding for the IPO of its joint-owned Indian operations in a proposed stock market listing in Mumbai that could be worth up to £1.23bn.
SSP, which operates convenience food stores and restaurants in travel gateways across 40 countries, plans to list the Travel Food Services joint venture with K Hospitality Corp on July 14.
Care facilities investor Primary Health Properties said that improving rental growth and stabilisation in yields underpinned valuation growth in the six months ended 30 June.
PHP also noted that it continues to believe in the “compelling strategic and financial rationale” for its recommended combination with Assura, stating that the transaction was expected to be earnings accretive for both sets of shareholders.