The aerospace giant’s stock is a top riser on the blue-chip index after a previous slump
A general view of the Rolls Royce Inchinan factory
Shares in aerospace behemoth Rolls-Royce have rebounded towards an all-time high, following a slump triggered by US tariffs that sent the City giant’s stock plummeting.
The FTSE 100 titan saw its stock rise by 1.6 per cent to 1,250.50p on Tuesday morning, making it one of the leading risers on the blue-chip index.
The group, which has UK sites in Derby and Filton near Bristol and is valued at a colossal £105bn, has been lauded as one of the London stock market’s top performers after gaining over 100 per cent last year.
However, the company took a hit following the latest trade salvo from President Donald Trump, which imposed sweeping ten per cent tariffs across the US’ Nato allies for their staunch defence of Greenland.
Rolls-Royce’s stock price fell by around eight per cent, losing over 100p in the week that followed as tensions escalated over Greenland’s sovereignty. Trump announced his latest instance of a so-called ‘TACO’ Trade (Trump Always Chickens Out) on 22 January.
Despite this, Rolls-Royce shares experienced a modest dip again last week after announcing it had secured an order from Delta Air Lines for 62 new engines. Rolls-Royce’s Tuesday rally follows the firm reaching an all-time high of 1,305.00p in mid-January.
Last year, amidst Trump’s ‘Liberation Day’ tariff onslaught, the stock dropped to lows of 659.00 as exporters felt the pinch of the White House’s unpredictable trade policy, as reported by City AM.
Rolls-Royce shed approximately 19 per cent during the week Trump emerged in the White House gardens brandishing a sandwich board announcing sweeping tariffs on America’s trading partners.
Following Trump’s U-turn, the blue-chip stock resumed its upward trajectory, ending the year at 1,150.00p.
The company has now entered the top five most valuable firms on the London Stock Exchange and is hot on the heels of Unilever, which sits just ahead with a £108bn market capitalisation.
Last month, HSBC surpassed AstraZeneca to become the City market’s most valuable company.
