UK's FTSE 100 Flat as Investors Assess Trump's Latest Tariffs Ahead of Fed

FTSE 100 Holds Steady as Trump's Tariffs Loom and Fed Decision Nears

(Reuters) - Britain's benchmark FTSE 100 index ended flat on Tuesday, as investors assessed the lingering tariff concerns and their economic impact, with attention shifting to upcoming U.S. Federal Reserve and Bank of England policy decisions.

The domestically focused midcap index gained 0.6%, posting its ninth consecutive daily rise.

On Sunday, U.S. President Donald Trump slapped a 100% tariff on movies produced outside the United States, while on Monday, he announced potential pharmaceutical tariffs over the next two weeks, adding to the uncertainty that has gripped financial markets in recent months.

While, investors hoped for easing trade tensions between the United States and China after Beijing said it was evaluating Washington's offer for tariff talks, limited details have kept markets struggling to interpret White House headlines.

Precious metal miners stocks led the sectoral gains with 5.5% rise, after gold prices rose to a two-week high. [GOL/]

Endeavour Mining and Fresnillo gained the most in the FTSE 100, up 5.2% and 4.7% respectively.

Oil major BP rose 1.4% on a report of potential acquisition by Shell.

Shares of Deliveroo hit an over three-year high, up 1.9%, as U.S. meal delivery firm DoorDash agreed to buy the British rival.

Conversely, Anglo American fell 3.1%, after Peabody Energy said it may terminate the deal to buy the miner's Australian coal assets.

On the data front, Britain's services sector shrank in April for the first time since October 2023 and at the fastest pace in over two years, according to a survey that showed U.S. tariff turmoil was hammering exports and sentiment.

Separately, Britain and India clinched a free trade agreement, in a landmark deal that represents London's most significant post-Brexit pact, and was finalised in the shadow of Trump's tariff announcements.

Attention now shifts to BoE's policy decision, with expectations of a 25-basis-point rate cut on Thursday.

Meanwhile, Fed policymakers are likely to maintain current interest rates at Wednesday's meeting.

(Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Vijay Kishore and Tomasz Janowski)