FTSE 100 dips as Shell weighs, investors eye US tariffs

(Reuters) -Britain's main stock indexes ended lower on Monday as investors parsed through a bunch of corporate updates and focussed on developments around U.S. tariff policy.

The blue-chip FTSE 100 dipped 0.2%, while the domestically oriented FTSE 250 slipped 0.1%.

U.S. President Donald Trump said on Sunday that Washington was close to finalising several trade agreements and would notify the countries of higher tariff rates by July 9, with the tariffs to go into effect on August 1.

UK midcap stocks came under pressure last week after British Finance Minister Rachel Reeves appeared in tears in parliament following a series of costly U-turns on welfare reforms, raising concerns about the government's ability to cut spending, and about party control.

While markets have recovered since, uncertainty around U.S. tariffs continued to weigh on sentiment.

Oil and gas stocks dropped 2.6%, leading losses among the main UK sectors.

Shell dipped 2.9% after the energy giant forecast quarterly earnings would be hit by weaker trading in its integrated gas division and losses at its chemicals and products operations, ahead of second-quarter results due on July 31.

Peer BP was down 2% despite gains in crude prices. [O/R]

Currys fell 5%, leading losses in the midcap index, after RBC downgraded the electrical retailer to "sector perform", saying its outlook will remain sensitive to macro-economic risks.

Ukraine-focussed miner Ferrexpo slid 1.5% after it reported a 40% slump in its second-quarter iron ore production.

(Reporting by Twesha Dikshit and Ankita Yadav; Editing by Vijay Kishore and Andrew Heavens)