Investing.com -- British stocks opened lower on Thursday, reversing recent gains, marking a subdued start to the new month, with earnings reports from Lloyds and the London Stock Exchange in focus.

As of 0710 GMT, the blue-chip index FTSE 100 dropped 0.2% and the British pound fell 0.4% against the dollar to 1.32.

Major European markets are closed today in observance of Labor Day.

LSE posts strong start to 2025

London Stock Exchange Group PLC (LON: LSEG ) reported an 8.7% increase in first-quarter income, excluding recoveries, on Thursday, driven by robust double-digit growth in its Markets and Risk Intelligence divisions and consistent performance across all business segments.

For the three months ended March 31, total income excluding recoveries rose to £2.26 billion, up from £2.09 billion in the same period last year.

Lloyds sees lower Q1 profit as tariff risks weigh

Lloyds Banking Group PLC (LON: LLOY ) reported a nearly 7% drop in first-quarter profit, pressured by higher expenses and preparations for the potential effects of recently announced trade tariffs.

For the quarter ending March 31, the bank posted a pre-tax profit of £1.52 billion, slightly below analyst expectations of £1.53 billion and down from £1.63 billion in the same period last year.

Lloyds also recorded a £100 million provision to account for tariff-related risks, stating that the scale of the newly introduced non-U.K. tariffs and the market’s initial reaction were more substantial than anticipated.

Rolls-Royce (OTC: RYCEY ) maintains 2025 outlook

Rolls-Royce Holdings PLC (LON: RR ) reported a solid performance across all business units at the start of 2025 and reiterated its full-year outlook for profit and cash generation, despite ongoing economic challenges.

The British engineering group reaffirmed its guidance for underlying operating profit and free cash flow to range between £2.7 billion and £2.9 billion, citing operational improvements and stable demand across core markets as key drivers.

Schroders reports £7.4 bln Q1 outflows

Schroders PLC (LON: SDR ) disclosed first-quarter net outflows totaling £7.4 billion, driven largely by notable client redemptions from its China-based joint ventures.

By the end of March, the firm’s assets under management had slipped to £758.4 billion, a drop of nearly 3% compared to the close of the previous year.

(This story will be updated)