British Shares Rebound on Ukraine Ceasefire Optimism
(Reuters) -British shares rebounded on Wednesday after logging recent declines as investors focused on positive developments in the Ukraine-Russia conflict, while assessing corporate earnings.
The benchmark index FTSE 100 closed 0.5% higher, snapping six sessions of declines, its longest losing streak since September.
The U.S. on Tuesday agreed to resume military aid and intelligence-sharing with Ukraine after Kyiv voiced its readiness to accept a 30-day ceasefire proposal with Russia.
Most sub-sectors in London closed higher, with financials the biggest boost to the blue-chip index.
Precious metal miners lead broader gains, closing 2.8% higher, tracking higher gold prices.
Hochschild Mining helped with its 12.6% climb after the miner restored its dividend payout, and was the biggest gainer on the mid-cap FTSE 250, that ended 0.6% higher after three straight sessions of declines.
Investor focus remained on U.S. tariffs and trade policy, with a back and forth stance taken by President Donald Trump creating volatility in markets.
Trump's increased tariffs on all U.S. steel and aluminium imports took effect on Wednesday, to which the European Union vowed to impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month.
Britain favoured pragmatism over tit-for-tat tariffs, though Prime Minister Keir Starmer said he was disappointed by the move and that all options remained on the table.
Meanwhile, data showed U.S. consumer prices increased moderately in February, but the improvement is likely temporary against the backdrop of aggressive tariffs on imports.
Among other stocks, Hill & Smith gained 8% after the infrastructure product maker's annual core profit beat expectations.
Balfour Beatty gained 4.5% after recording a higher order book, while JD Sports fell about 3.2% after peer Puma's bleak forecast.
Legal & General lost 2.3% after the British life insurer missed annual operating profit estimates.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Shounak Dasgupta and Angus MacSwan)
