Rolls-Royce: FTSE 100 shares fully recover after Trump tariffs shock
Shares in Rolls-Royce have completely recovered from the tailspin President Donald Trump sent global markets into when he announced a raft of tariffs at the start of April.
The FTSE 100 giant suffered a huge slump in its share price following the US president’s so-called “liberation Day’ on 2 April.
The announced tariffs saw shares in the Derby-headquartered group fall from 779.4p on 1 April to 635.8p by the end of trading on 7 April.
The decline in Rolls-Royce’s share price saw more than £10bn wiped off its market capitalisation.
However, since then its share price has been steadily recovering and has now surpassed where it had been before ‘Liberation Day’.
Shares in Rolls-Royce are currently trading hands for around 783p, giving the group a market capitalisation of £66.4bn.
The price is still below the all-time high of 812.8p which the group achieved in the middle of March.
While Rolls-Royce did suffer a huge fall in its share price in the wake of the tariffs announcement, their value never dipped below where they had been trading before a huge spike in value at the end of February.
That increase, sparked by encouraging financial results and a Ukraine defence summit, saw its share price rocket from 6062p to 805.2p in a matter of days.
Shares in Rolls-Royce started to rebound on 8 April while the group re-passed the £60bn valuation mark on 22 April.
At the start of May, Rolls-Royce said it is confident it will hit underlying profit of nearly £3bn in 2025.
The London-listed engineering giant held a previously guided underlying profit range of between £2.7bn and £2.9bn.
It is also looking at between £2.7bn and £2.9bn of free cash flow.