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The FTSE 100 index of shares is on the right track for its worst week to this point in 2025. Down 1.8%, it’s slumped as fears on potential ‘Trump tariffs’ — and the specter of retaliatory motion from the US’ commerce companions — steadily develop.
Information right this moment (7 March) that Chinese language imports collapsed 8.4% in January and February hasn’t helped the temper, probably reflecting producers’ fears over the affect of recent commerce wars.
President Trump’s resolution to delay some tariffs this week provides purpose for hope. However markets hate uncertainty, and extra volatility on the Footsie (and different main indexes) could be anticipated as combined indicators from Washington proceed.
However this shouldn’t trigger long-term traders to panic. The Footie is up 12 months so far and over 12 months. And I’m scouring the inventory market to any discover good bargains which have been offered off within the panic.
Listed here are two I believe deserve critical consideration from savvy traders.
Smurfit WestRock
Packaging producer Smurfit WestRock (LSE:SWR) is one which’s grabbed my consideration. At £36.26, its price-to-earnings (P/E) ratio has tumbled to 14.2 instances for 2025 following latest worth weak point.
However what’s actually appetising is its rock-bottom price-to-earnings development (PEG) ratio of 0.2. Any studying beneath one signifies {that a} share is undervalued. Smurfit shares clearly fall effectively beneath this threshold.
Smurfit sells cardboard containers and different packaging merchandise throughout the globe, and is an particularly massive participant throughout Europe and North America. However it faces important headwinds if punishing commerce tariffs are available to dampen client and enterprise spending.
On the plus facet, its important publicity to defensive industries might assist restrict any turbulence. It sells product throughout every a part of the meals and drinks provide chain, and can be a key provider to fast-moving client items (FMCG) and foodservice prospects.
What’s extra, its earnings outlook stays strong over the long run. Main structural alternatives (like the expansion of e-commerce and rising markets development) exist. Moreover, its regular transition to offering sustainable merchandise places it extra in keeping with rising buyer wants.
With its ahead dividend yield additionally now peaking above the FTSE common (at 3.6%), I believe it’s an awesome dip purchase to think about.
Scottish Mortgage Funding Belief
The Scottish Mortgage Funding Belief (LSE:SMT) is one other blue-chip faller I believe deserves critical consideration.
Tech trusts like this have fallen sharply because of the cyclical nature of their holdings’ operations. However this isn’t the entire story. With massive holdings in SpaceX and Tesla, traders concern it may very well be an oblique sufferer of the ‘Elon Musk commerce’ (with those that don’t align to his political beliefs shunning belongings and merchandise related to the billionaire).
These dangers deserve critical consideration. However I additionally imagine they might be baked into Scottish Mortgage’s ultra-low valuation.
At 980.2p, it now trades at a 14% low cost to its web asset worth (NAV) per share. That is the widest it’s been for nearly a 12 months.
I additionally imagine that, on steadiness, the potential advantages of proudly owning Scottish Mortgage shares outweigh the dangers. Over a long-term horizon, I anticipate fast-growing tech sectors like synthetic intelligence (AI), cloud computing and robotics to drive earnings by way of the roof.
