Trump Tariffs Slam UPS, BP Slides on Q1 Profit Miss

On Tuesday, BP shares dropped on news of a wider than expected profit decline in the first quarter while delivery giant UPS announced 20,000 job cuts as fallout from US President Donald Trump’s sweeping tariffs deepens. While US stocks edged higher Tuesday, investor sentiment remained shaky with the dollar on track for its worst monthly performance in over two years. Markets are eyeing a raft of data today, including German inflation, eurozone GDP, and the US core PCE price index.

Equities

The FTSE 100 rose 0.6% on Tuesday, extending its winning streak to 12 sessions, helped by gains in banking stocks and relief from developments around US automotive tariffs.

HSBC led the index, climbing 2.6% after reporting stronger-than-expected Q1 profits and launching a $3 billion share buyback. The bank said it remained focused on capital returns following pressure from shareholders. Howden Joinery added 4.6% after reporting higher revenue, and Entain rose 3.3% following the announcement that Stella David had been appointed as permanent CEO. Travis Perkins jumped 4.2%, supported by 3.7% like-for-like growth in its Toolstation division during Q1.

BP fell 2.4% after a 48% drop in quarterly net profit, worse than analysts had forecast, weighing on the broader energy sector. Associated British Foods slumped 9.2% after reporting a 10% fall in first-half profit, with investors reacting negatively despite continued growth at Primark.

In the US, equities closed higher following a choppy session. The Dow Jones rose 0.75%, the S&P 500 gained 0.58%, and the Nasdaq added 0.55%. The S&P 500 marked its sixth consecutive day of gains, supported by earnings reports from large companies. Honeywell surged 5.4% after posting a rise in adjusted quarterly profit. Sherwin-Williams rose 4.8% on the back of stronger-than-expected results, and Coca-Cola added 0.8% after beating both revenue and profit expectations.

General Motors slipped 0.6% despite a strong earnings report, after pulling its full-year forecast due to uncertainty around tariffs. UPS shares edged down 0.4% after the delivery firm reported earnings and said it would cut 20,000 jobs while shifting away from Amazon deliveries. Wells Fargo gained 2.4% after announcing a share buyback programme worth up to $40 billion. Meanwhile, HSBC lowered its year-end target for the S&P 500 from 6,700 to 5,600, citing mounting pressures on corporate earnings.

Forex & Commodities

The US dollar edged slightly higher early Wednesday but remained on course for its weakest monthly showing since November 2022, having shed 4.6% in April.

Retreats and delays on President Trump’s recently announced tariffs have weighed on confidence in US assets, even as the administration signed orders to ease auto tariffs and claimed progress on trade deals.

The euro held steady at $1.1372 and is up over 5% this month, while sterling has gained 3.8% in April, trading at $1.33865—its strongest monthly rise since late 2023. The Swiss franc rose more than 7% in April, its best run in over a decade, while the Japanese yen was firmer ahead of Thursday’s Bank of Japan decision, which is expected to keep rates unchanged.

The dollar’s rebound pushed gold down 0.3% to $3,306.18/oz, trimming April’s gains to just under 6%. Bullion reached a record $3,500.05/oz earlier this month, driven by demand for safety during political and economic uncertainty, but has since eased as trade rhetoric softened. Silver, platinum and palladium all slipped slightly in early trading.

Oil prices extended declines, with Brent crude falling to $63.50/bbl and WTI down to $59.63. Both benchmarks are on track for their biggest monthly fall in over three years—dropping 15% and 17% respectively—as the tariff-driven downturn in global manufacturing hit demand expectations. China’s PMI data showed factory activity contracting at its fastest rate in 16 months. Market focus is now on the May 5 OPEC+ meeting, with some members pushing for a second consecutive monthly output increase.