FTSE 100 today: Pound slips on Trump latest tariff threat; Ashmore reports

The British pound fell to $1.34 amid new U.S. tariff threats, contributing to mixed European market performance as the FTSE 100 edged up while German and French indices declined. Ashmore Group reported a $1.4 billion increase in Q4 AUM to $47.6 billion, driven by investment performance despite net outflows, while AstraZeneca shares rose 2% on positive late-stage trial results for its experimental blood pressure drug. Concurrently, Elixirr International saw a 5% gain on 35% H1 revenue growth, and DCC sold its IT division for approximately £100 million, even as the UK labor market showed a deepening slump with permanent staff appointments falling at the fastest rate in 22 months.

Analysis

European markets exhibited a mixed performance against a backdrop of renewed geopolitical and economic headwinds. The British pound depreciated to $1.34 following U.S. tariff threats, contributing to declines in Germany's DAX (-0.7%) and France's CAC 40 (-0.5%), although the UK's FTSE 100 edged up 0.2%. This macro pressure was compounded by UK-specific data showing the fastest drop in permanent staff appointments in 22 months, signaling a deepening recruitment slump. Despite this, several companies reported positive, stock-moving developments. AstraZeneca (AZN) shares gained 2% after its experimental blood pressure drug, baxdrostat, met its primary and secondary endpoints in a late-stage trial. Similarly, consultancy Elixirr International (ELIX) saw its shares jump approximately 5% on news of a 35% year-over-year revenue increase for the first half. In the asset management sector, Ashmore Group (ASHM) grew its AUM by $1.4 billion to $47.6 billion, a rise attributed to $2.2 billion in investment performance which successfully offset $0.8 billion in net outflows. Corporate activity included DCC's divestment of its IT division for roughly £100 million and GSK's RSV drug, Arexvy, being accepted for review for an extended use case in the US.

Key Decisions for Investors

• Given the weakening UK labor market and pressure on the pound, investors should remain cautious on UK-centric assets that are highly sensitive to domestic economic conditions.
• AstraZeneca's positive late-stage trial data for baxdrostat is a significant de-risking event that could enhance its pipeline's valuation and future earnings potential.
• For Ashmore Group, the key consideration is whether its strong investment performance can continue to mask and compensate for the underlying net outflows from its funds.
• The substantial 35% revenue growth at Elixirr International presents a potential growth opportunity, but investors should monitor if the company maintains this momentum to meet full-year market expectations.