Summary:

• EU to put countermeasures to U.S. tariffs on hold

• Tesco (OTC:TSCDY) warns profits may decline in upcoming financial year

• UK housing market continued to weaken in March, RICS survey shows

Investing.com -- British stocks opened higher on Thursday after the U.S. President Donald Trump made another move in the ongoing tariff dispute the previous day, announcing a 90-day tariff pause, that lifted global markets.

As of 1023 GMT, the blue-chip index FTSE 100 index and the midcap index FTSE Mid-Cap 250 surged nearly 4.5%, while DAX index in Germany soared 5.6%, the CAC 40 in France gained 5.3%.

Top gainers include Barclays PLC (LON:BARC), which rose 10.9%, JD Sports Fashion PLC (LON:JD), up 9.7%. On the downside, Tesco PLC (LON:TSCO) fell 5.9%, while J Sainsbury PLC (LON:SBRY), declined 4.6%.

On Wednesday, President Trump announced a temporary 90-day reduction in new tariff rates, bringing them down to 10%, for most U.S. trade allies. China, however, was excluded from the relief, prompting the U.S. to raise tariffs on Chinese goods to 125% in response to Beijing’s earlier move to increase duties on American imports to 84%.

European Commission President Ursula von der Leyen on Thursday welcomed Trump’s reversal of tariffs, announcing that the EU will pause its planned countermeasures for 90 days, a day after the bloc approved its first round of retaliatory measures in response to U.S. steel and aluminum tariffs.

What does the tariff reprieve mean for the UK?

According to Sanjay Raja, U.K. Chief Economist at Deutsche Bank tariff reprieve mean not very much for the region. "Direct tariffs placed on UK exports remain unchanged at 10%. Lower tariffs elsewhere, however, will limit some of the negative external spillovers – but only marginally. Markets have reacted accordingly," Raja said in a note.

Despite the temporary relief from tariffs, the UK remains in a challenging position. It can no longer afford to remain passive on industrial policy, as trade uncertainty is likely to persist and sentiment has likely taken a hit. Policymakers will need to tread carefully as they navigate this shifting economic landscape, he added.

Tesco warns profit drop

In earnings news, Tesco PLC (LON:TSCO) shares fell on Thursday after it cautioned that profits may decline in the upcoming financial year, as the retailer contends with rising taxes, persistent inflation, and growing competition in the UK grocery sector.

While Tesco reported solid results for the year ending February 22, 2025, it anticipates adjusted operating profit for 2025/26 to fall between £2.7 billion and £3 billion, lower than this year’s £3.13 billion.

National Grid PLC's (LON:NG) shares moved slightly up 2.3% after the electricity and gas utility said its performance remains in line with expectations, consistent with guidance issued at the half-year stage, on a constant currency basis.

Shares in electronic connector maker TT Electronics plummeted 10.5% after it delivered FY24 results in line with guidance, but trimmed its FY25 outlook by a high-teens percentage at the midpoint. The firm's CEO Peter France has stepped down effective immediately, with newly appointed CFO Larkin taking over as interim CEO.

UK housing market continued to weaken in March

The UK housing market saw further softening in March, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS), which highlighted a deeper decline in demand and a muted outlook for both sales and prices.

New buyer enquiries dropped sharply, with a net balance of -32%, down from -16% in February and -1% in January, reaching the lowest level since September 2023.

In other company news, LondonMetric (LON:LMPL) Property announced the acquisition of a long-let M&S (LON:MKS) logistics warehouse for £74 million, reflecting a NIY of 5.65%.

This article first appeared in Investing.com