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Well we are cruising through into the afternoon, so let's take a look at what's been happening in equity markets in London this morning...

• Hochschild Mining shone as the gold miner hailed its best financial performance for 13 years.

• Hill & Smith surged as the construction and infrastructure products firm hiked its annual dividend by 14% after seeing underlying profits rise by almost a fifth in 2024.

• Infrastructure construction specialist Balfour Beatty rose as it posted an 11% increase in underlying annual earnings and said it would buy back £125m in shares this year.

• On the downside, financial services group Legal & General fell despite saying it will buy back £500m of shares this year after a strong financial performance in 2024, as part of plans to return more than £5bn to shareholders within three years - equal to around 40% of its market capitalisation.

• Core operating profits were up 6% last year at £1.62bn, with a decline in asset management profits outweighed by growth in the retail and institutional retirement divisions.

• 4imprint tumbled as the direct marketer of promotional products posted a rise in full-year profits and revenues but struck a cautious note on the outlook, warning over the potential impact of US tariffs.

• US annual inflation fell to 2.8% in February, from 3.0% in January.

• US month-on-month inflation fell to 0.2% in February, from 0.5% in January.

• Annual core inflation fell to 3.1% in February from 3.3% in January.

• US month-on-month core inflation fell to 0.2% in February, down from the 12-month high of 0.4% in January.

Isaac Stell, investment manager at Wealth Club said:

February's Consumer Price Index (CPI) report showed inflation pressures eased in February, calming some fears about the health of the US economy during a rocky few weeks for markets.

The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.8% over the prior year in February, below January's 3% annual gain and ahead of economist expectations of a 2.9% annual increase.

The index rose 0.2% over the previous month, a deceleration from the 0.5% increase in January and a beat compared to economists' estimates of a 0.3% monthly uptick.

On a "core" basis, which strips out the more volatile costs of food and gas, prices in February climbed 0.2% over the prior month, lower than January's 0.4% monthly gain, and 3.1% over last year — the lowest yearly increase in core CPI since April 2021.

This also marked a downtick from the 3.3% core price increases seen in the prior-month period and was ahead of Bloomberg consensus estimates.

It was the first time since July that both headline and core CPI showed a deceleration in price growth.

Core inflation has remained stubbornly elevated due to sticky costs for shelter and services like insurance and medical care. But shelter did show further signs of easing in February, rising 4.2% on an annual basis, the smallest 12-month increase since December 2021.

Read more here

Puma will cut 500 jobs worldwide as part of its cost-reduction programme, its CFO said after the German sportswear group late on Tuesday issued disappointing forecasts for the first quarter and 2025 amid weak demand in the US and China.

Reuters has the details...

Puma's disappointing quarterly sales and annual profits announced in January and Tuesday's outlook have fuelled concerns about its ability to compete with bigger rivals Adidas and Nike.

Puma is also looking to fend off younger, fast-growing brands like On Running and Hoka as it strives to boost its brand and take a larger share of the $400 billion global sportswear market.

Around 150 jobs of the 500 will be cut at the Puma headquarters, CEO Arne Freundt said in a conference with journalists.

The company, which employs around 21,000 people worldwide, will also close selected unprofitable stores, Chief Financial Officer Markus Neubrand added.

A low single-digit percentage of businesses are affected, Freundt said.

Puma had launched a cost-cutting programme aiming to reach an earnings before interest and tax (EBIT) margin of 8.5% by 2027, compared with 7.1% in 2024.

Canada is expected to announce retaliatory tariffs on the US in response to Trump’s steel and aluminium tariffs.

The Commonwealth nation will impose $29.8bn Canadian of levies against US goods, a Canadian official told Reuters.

It comes as Canada is the biggest foreign supplier of steel and aluminium to the United States.

The escalation of the US-Canada trade war comes as Prime Minister Justin Trudeau prepares to hand over power this week to his successor Mark Carney, who won the leadership race of the ruling Liberals on Sunday.

On Monday, Mr Carney said he could not speak with Trump until he was sworn in as prime minister. The US president said again on social media this week he wanted Canada “to become our cherished Fifty First State.”

And sticking with commodities, oil (BZ=F, CL=F) and gold prices (GC=F) have risen today.

• Gold prices edged up on Wednesday morning, buoyed by growing demand for the precious metal as a safe haven amid escalating trade tensions. Investors are also bracing for the latest US inflation data, which could influence the precious metal’s trajectory.

• Spot gold rose 0.4% to $2,921.16 per ounce, while gold futures gained 0.1% to trade at $2,924.00.

• "​The sideways move in spot gold continues, with the price finding gains capped below $2,930.00, and a new support at $2,880.00 so far preventing any further downside," Chris Beauchamp, chief market analyst at IG, said.

• ​"Tuesday’s bounce took the price back to the top of the current range, but it is currently showing little inclination to break higher."

Traders are awaiting the release of the US Consumer Price Index (CPI) data later today, which will offer key insights into the Federal Reserve's upcoming interest rate decisions. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, often driving up both demand and prices for the metal.

• Oil prices saw a rebound as global markets grappled with a mixture of economic uncertainties, including concerns about the impact of tariffs, the potential for a US recession, and the prospect of increased output from OPEC+.

• Brent crude futures rose 0.4% to $69.33 per barrel, while US West Texas Intermediate (WTI) crude climbed 0.5% to $66.57 per barrel.

• The rebound follows a period of market volatility largely driven by Trump’s protectionist trade policies. His administration's tariffs on major oil suppliers, including Canada and Mexico, have created ripples across global markets.

• Additionally, the increase in duties on China, which prompted retaliatory measures, has added to the strain on oil prices.

Over the weekend, Trump indicated that the global economy may enter a “period of transition,” while also leaving open the possibility of a US recession, further deepening investor concerns.

February proved to be another eventful month for investors, as escalating trade tensions and geopolitical risks sparked further volatility in markets.

US president Donald Trump pushed ahead with his second term agenda last month, with trade tariffs a key focus of these policy plans. This included imposing tariffs on China, as well as announcing plans for reciprocal tariffs. An on-again, off-again theme over tariffs on Mexico and Canada carried on into March, creating more uncertainty for investors.

There is growing concern that a tariff trade war could stoke already stubborn inflation and be a further drag on economic growth. These fears sparked a sell-off across stock markets globally this week, after Trump declined to rule out the possibility that the US economy could dip into a recession this year, in an interview on Sunday.

Meanwhile, concerns remained in February around the level of spending on artificial intelligence by major tech companies, in the wake of DeepSeek's release of a lower cost AI model. This continued to weigh on the share price of chipmaker Nvidia (NVDA) going into the release of its highly-anticipated fourth-quarter earnings in late February.

The month ended with a fiery exchange between Trump and Ukrainian president Volodymyr Zelensky at a White House meeting to discuss a minerals deal, which was hoped would help guarantee further US support towards ending the Russia-Ukraine war. This escalation in geopolitical tensions saw European countries pledge to boost defence spending, on expectations that they could end up shouldering more of the responsibility for Europe's security.

Against this backdrop of heightened economic and geopolitical uncertainty, here are the stocks investors favoured in February.

The euro has gained against the dollar today as the European Union announced countermeasures to Donald Trump’s metal tariffs. The single currency is holding above the 1.09 level and near the five-month high reached on Tuesday.

It has appreciated by nearly 5% this month, driven by growing demand as plans to increase budget flexibility within the eurozone and boost defence spending—particularly in Germany—gain traction.

Ricardo Evangelista, senior analyst at ActivTrades, said:

Porsche (P911.DE) lowered another profitability goal after the luxury-car maker’s earnings slumped due to tumbling sales in China.

The German manufacturer is now aiming for a return on sales of between 15% and 17% in the medium term, Chief Financial Officer Jochen Breckner said Wednesday, having previously targeted as much as 19%.

This year will see the start of an “extensive rescaling” with model, software and battery investments that will hit 2025’s financial results, Porsche said. The company is planning an additional 911 and mulling a new SUV line toward the end of the decade as it pivots back to popular combustion engine and hybrid cars.

The shares fell more than 5% on Wednesday. The stock has more than halved from its peak in May 2023.

The UK's recycling capacity could be affected by Trump’s tariffs on aluminium, the head of an industry body warned.

Nadine Bloxsome, chief executive of The Aluminium Federation, said:

Trump has driven up demand for financial advice from new clients by 20% in the first 50 days of his second presidency, according to deVere Group, one of the world’s largest independent financial advisory firms.

First, it was to capitalise on the euphoria of the "Trump Trade". Now, it's concerns over tariffs and economic growth fears, deVere said after it recorded a 30% surge in new client enquiries since Trump was sworn in.

The company attributes this dramatic increase to heightened market volatility caused by abrupt policy swings — first the post-election rally, and now escalating fears of trade wars that could stall growth.

As markets react to the White House’s latest trade decisions, investors are scrambling for financial advice at an unprecedented rate. The whiplash of optimism and uncertainty, driven by erratic tariff policies and unpredictable global negotiations, is fuelling demand for professional guidance.

“This is a tale of two market reactions,” says DeVere CEO Nigel Green.

“Initially, investors were racing to position themselves to benefit from the Trump Trade — a pro-business, pro-market stance that sent stocks soaring. But the sentiment has shifted. The reality of tariffs, trade conflicts, and inflation concerns is causing a flight to expert financial planning.”

The markets have become a barometer of Trump’s unpredictable policy moves.

“His administration’s initial signals of corporate-friendly deregulation and tax cuts propelled equities to new highs,” notes Nigel Green. "But in the weeks that followed, tensions with China, renewed tariffs on key industries, and aggressive rhetoric toward trade partners introduced instability."

As a result, the dollar has wobbled, equities have swung violently, and global investors are growing wary.

“The uncertainty is palpable,” continues Green. “Our clients — high-net-worth individuals, expats, and international investors — want to know how to protect their portfolios from sudden shocks. Many are restructuring their holdings, diversifying into non-dollar assets, and increasing exposure to safe-haven investments like gold and select emerging markets.”

The UK business secretary has called Donald Trump’s decision to impose global tariffs on steel and aluminium “disappointing”, adding that “all options” are on the table to respond in the national interest.

Jonathan Reynolds said:

The UK's Department for Business and Trade (DBT) has been advised by the public spending watchdog to improve its business practices and transparency around spending, or face a possible negative impact on growth.

The call comes as worries about national trade policy reach a fever pitch and anxiety around the rate of UK growth ramps up.

A report released today by the National Audit Office (NAO) evaluated the potential impact of the government's forthcoming industrial strategy, looking at how DBT is structured and how it works with other departments.

Issues identified include a limited view of overall government spending on business support; a lack of transparency when making decisions to support industry; and difficulty in influencing other departments to change policy.

"[DBT] has engaged extensively with industry stakeholders to understand their needs and developed sector plans using its knowledge of the economy," the report said. "It also shares its business intelligence widely across government."

Despite this, the department does not have a complete overview of what it and wider government spends supporting industry — hindering its ability to make sound decisions in the future and allocate resources strategically, the report adds.

"DBT is not yet working effectively across Whitehall to provide a unified voice for business," said Sir Geoffrey Clifton-Brown MP, chair of the Committee of Public Accounts.

"It also lacks an overall picture of where taxpayers’ money is being spent to support sectors and which interventions work when."

Read the full article here

Positive headlines on Ukraine accepting a proposal for a 30-day truce with Russia has helped markets to recover today.

Talks between US and Ukrainian officials in Saudi Arabia have reportedly amounted to Ukraine saying it was ready to accept a ceasefire, with the US administration in turn lifting the pause on military aid and intelligence it had announced early last week.

US officials now plan to present the plan to Moscow, with Trump saying that "Hopefully President Putin will agree to that also".

If the Russian president did accept, it would mark the first ceasefire in the more than three years since he launched his full-scale invasion of Ukraine in 2022.

Trump said; We’re going to meet with them [the Russians] later on today and tomorrow and hopefully we’ll be able to [work] out a deal. I think the ceasefire is very important. If we can get Russia to do it, that’ll be great. If we can’t we just keep going on and people are gonna get killed, lots of people.”

Meanwhile, UK prime minister Keir Starmer, welcomed the agreement, saying:

The EU retaliated against the 25% global tariffs on steel and aluminium which came into effect “with no exceptions or exemptions”.

The measure ends all country exemptions to the levies and is now set to escalate tensions with some of America's largest trading partners.

These measures will also impact American textiles, leather goods, home appliances, household tools, plastics and wood. Agricultural products will also be affected, including poultry, beef, some seafood, nuts, eggs, sugar and vegetables.

The European Commission (EC) responded almost immediately, saying it would impose counter tariffs on €26bn ($28bn) worth of US goods from next month.

The United States is the second biggest export market for EU steel producers, representing 16% of the total EU steel exports.

Meanwhile, the UK did not announce any tariffs in response as it works towards "a wider economic agreement", despite calls from the industry to "act decisively".

Asian shares were mostly lower on Wednesday as investors weighed the impact of president Donald Trump’s tariffs after another day of losses on Wall Street.

The Nikkei (^N225) rose 0.1% on the day in Japan, while the Hang Seng (^HSI) fell 0.8% in Hong Kong. The Shanghai Composite (000001.SS) was 0.2% down by the end of the session.

It came as US stocks suffered a choppy session last night, in which they briefly went 10% below their latest record-high close thanks to the president’s escalation of his trade war

Trump upped his tariffs against Canadian steel and aluminium, prompting the Canadian province of Ontario to remove a surcharge that had enraged him.

The S&P 500 (^GSPC) finished down 0.8% at 5,572.07, while the Nasdaq (^IXIC) ended 0.2% lower at 17,436.10. The Dow Jones (^DJI) lost 1.1% to close at 41,433.48.

In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.285% from 4.190pc late on Monday.

Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets, and happening across the global economy.

Here's a quick look at what's on the agenda for today:

• 7am: Trading updates: Balfour Beatty, Legal and General, Hikma Pharmaceuticals, Gym Group, Hochschild, Pensionbee

• 11am: US MBA Mortgage Applications

• 12.30pm: US inflation for February

• 1.45pm: Bank of Canada interest rate decision

• 2.30pm: US Crude Oil Inventories