Published by Global Banking and Finance Review
Posted on April 15, 2025
(Reuters) - UK's main indexes rose on Tuesday with financial shares leading the broad-based gains after U.S. President Donald Trump signalled possible exemptions on auto-related levies, while investors also assessed job market data for monetary policy insights amid global economic uncertainty.
As of 0958 GMT, the blue-chip FTSE 100 index was up 0.9% and the midcap index gained 0.5%.
Trump indicated he was considering adjusting the 25% tariffs on foreign auto and auto parts imports from Mexico, Canada and other regions. This followed Friday's exemption of smartphones, computers and other electronics from his "reciprocal" tariffs.
After recent market selloffs, investors seized on the positive news, pushing shares higher for the second consecutive session.
Luxury carmaker Aston Martin and automotive parts supplier Dowlais Group advanced 4% and 2%, respectively.
Investment banking and brokerage service index led gains, rising 3%, with investment firm 3I group topping the FTSE 100 with a 4% increase after Citigroup raised its target price on the stock.
Precious metal miners also strengthened as gold prices climbed, with investors turning to the safe-haven asset amid ongoing uncertainty about U.S. tariff plans. Fresnillo, Hochschild and Endeavour Mining gained between 4% to 2%.
Aerospace and Defence index climbed 2%, with Rolls Royce rising 2.4% after the Pentagon named Rolls-Royce Solutions America as the principal contractor for a potential sale of Eitan PowerPack engines to Israel.
Frasers was among the top performers on the midcap index, up 3.3%, after the sportswear and fashion group announced an agreement with Australian footwear retailer Accent Group to launch and operate Sports Direct across Australia and New Zealand.
On the data front, Britain's labour market weakened ahead of this month's tax hike on employers, but wage growth remained strong, complicating the job for the Bank of England, which is also expecting an economic hit from U.S. trade tariffs.
Investors were pricing a more than 90% probability on the BoE cutting rates by a quarter of a percentage point on May 8.
(Reporting by Ragini Mathur in Bengaluru; Editing by Tasim Zahid)
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