FTSE 100 LIVE: Stocks Cautious as Former Bank of England Governor Carney Clinches Canada Election Victory

By: Swarnalata

Published on: Apr 29, 2025

Market Overview: FTSE 100 and European Stocks Search for Direction

The FTSE 100 (^FTSE) opened cautiously on Tuesday as investors weighed corporate earnings against ongoing economic uncertainties. European markets showed mixed performance, with the German DAX (^GDAXI) gaining 0.4%, the French CAC 40 (^FCHI) nearly flat, and the pan-European STOXX 600 (^STOXX) up 0.2%.

The subdued sentiment reflects lingering concerns over trade tensions, political developments, and corporate earnings performance.

Key Highlights:

• FTSE 100 struggles for direction after a slight dip at the open.


• Mark Carney’s Liberal Party wins Canadian election, but majority government uncertain.


• Trade war fears persist as Trump’s tariff negotiations loom.


• Associated British Foods (ABF.L) shares plunge 8%, dragging down the index.

Mark Carney’s Election Victory: Implications for Markets

Former Bank of England (BoE) Governor Mark Carney led Canada’s Liberal Party to victory in the country’s general election. However, it remains unclear whether he will secure a majority government, raising questions about policy stability.

Why This Matters for Investors:

• Carney’s economic expertise could bring stability to Canada’s fiscal policies.


• A minority government may lead to slower reforms, impacting investor confidence.


• Global markets are watching for potential spillover effects on trade and monetary policy.

Carney, who served as BoE governor from 2013 to 2020, is known for his cautious yet proactive approach to monetary policy. His leadership could influence Canada’s economic trajectory amid global uncertainties.

Trade War Jitters Keep Investors on Edge

The U.S.-China trade war continues to cast a shadow over markets, with pending tariff negotiations creating uncertainty. Companies remain hesitant to make long-term decisions, fearing sudden changes in import/export taxes.

Key Concerns:

• Will Trump impose new tariffs? Markets fear renewed tensions.


• Supply chain disruptions could hurt earnings for multinational firms.


• European exporters are particularly vulnerable to trade policy shifts.

Investors are closely monitoring U.S. trade talks for signs of progress or escalation.

FTSE 100 Movers: Winners and Losers

Biggest Faller: Associated British Foods (ABF.L) (-8%)

• Primark’s parent company saw shares plummet after a weak earnings forecast.


• Rising costs and slowing sales in its retail division spooked investors.

Other Notable Movers:

• Mining stocks were mixed as commodity prices fluctuated.


• Banking shares edged higher amid expectations of steady interest rates.

European Markets: Inflation Data in Focus

Germany’s DAX Rises 0.4%

• Traders reacted to latest inflation figures, which could influence ECB policy.


• Strong industrial data provided some support.

French CAC 40 Flat, STOXX 600 Up 0.2%

• Luxury and auto stocks showed resilience.


• Tech and healthcare sectors saw modest gains.

What’s Next for Investors?

1. Earnings Season Continues – More corporate results will drive stock-specific movements.


2. Trade War Developments – Any updates on U.S.-China negotiations will sway sentiment.


3. Political Uncertainty – Carney’s ability to form a stable Canadian government will be watched.


4. Central Bank Signals – Investors await clues on future monetary policy from the Fed and ECB.

Conclusion: A Cautious Market Awaiting Clarity

The FTSE 100 and European markets remain in a holding pattern as investors digest earnings, political shifts, and trade risks. While Carney’s election win brings a seasoned economist to Canada’s leadership, questions over a majority government add uncertainty.