Stock Market Shifts Revealed in April: Winners and Losers Amid Trump's Tariff Turmoil
In the midst of US trade tariffs shaking up global markets, shares of Britain's top oil and gas producers have taken a hit on the London Stock Exchange over the past month. However, the FTSE 100 has clawed back some ground since President Donald Trump's "Liberation Day," attracting investors due to the index's "defensive" qualities.
BP has been the biggest loser in the FTSE 100 Index, with a 20.7% plunge, and Shell follows close behind with a 14.2% dip. These energy giants, who have already reported their first-quarter results, are feeling the pressure from lower oil prices as trade tensions weigh on the global economy. A barrel of Brent Crude currently sells for $61.8, marking an 11.8% monthly drop, while West Texas Intermediate crude oil futures have fallen 12.2% to $59.8 per barrel.
Ithaca Energy shares have also suffered, dropping by 18%, but Harbour Energy shares have fared worse than BP and Shell, plummeting by about 30%.
Other stocks hit hard are John Wood Group, 4imprint Group, and Watches of Switzerland, which declined massively following Trump's tariff remarks. Paul Moody, the chairman of 4imprint, warned that extra import duties might impact sales, as his company's order intake was marginally weaker in January and February. For Watches of Switzerland, the potential 31% tariffs on Swiss products (currently suspended) pose a serious threat to the luxury goods market's health.
Conversely, the FTSE 100's top risers in April were led by B&M and rebounding supermarkets. Discount chain B&M has been the blue-chip index's strongest performer over the past month, surging by 23.5%. Shares began soaring after the group said in mid-April that it expects annual profits to exceed the mid-range of guidance due to new store openings and strong trading in France.
The FTSE 250's biggest risers were led by electronics retailer Curry's, while the top ten fastest-growing mid-cap companies represent a wide diversity of sectors, from motor finance provider Close Brothers to pub chain JD Wetherspoon and low-cost airline Wizz Air.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented: "Investors appear to have an appetite for the defensive nature of the index, as they continue to show a little more wariness for US assets which risk staying more volatile given the erratic policymaking at the White House."
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First-Quarter Results of BP and Shell
BP's First-Quarter 2025 Results
- Financial Performance: BP reported an underlying replacement cost profit of $1.4 billion for the first quarter of 2025, marking a significant 49% drop compared to the previous year. This represents a decline in profits.
- Share Buyback: BP reduced its share buyback program to $750 million, indicating a cautious approach to capital management amidst challenging conditions.
- Net Debt: The company's net debt increased to nearly $27 billion, highlighting financial pressure.
Shell's First-Quarter 2025 Results
- Financial Performance: Shell reported a net income of $4.78 billion for the first quarter of 2025, despite a 35% year-over-year decline due to lower oil prices and refining margins. This performance was higher than anticipated.
- Share Buyback: Shell announced a $3.5 billion share buyback, continuing its 14th consecutive quarter of significant repurchases, demonstrating confidence in its financial resilience.
- Strategic Focus: Shell is focusing on modest growth in its upstream and integrated gas segments, aiming for a 1% annual increase through 2030.
- Despite a significant 49% drop in underlying replacement cost profit compared to the previous year, BP's first-quarter results for 2025 showed a decline in profits.
- In contrast, Shell's first-quarter results for 2025 revealed a net income of $4.78 billion, even though it experienced a 35% year-over-year decline due to lower oil prices and refining margins.
- As a result of challenging financial conditions, BP reduced its share buyback program to $750 million in its first-quarter 2025 results.
- However, Shell announced a $3.5 billion share buyback in its first-quarter 2025 results, emphasizing its confidence in the company's financial resilience.
- The financial performance and share buyback strategies of both BP and Shell, key players in the oil and gas industry, have been influenced by the present economic climate, characterized by lowered oil prices and trade tensions impacting global markets.
