British equities rise on US-China trade deal

Reuters05-13
UPDATE 1-British equities rise on US-China trade deal

US, China reach deal to temporarily slash tariffs

Ferrexpo rises on likely Ukraine-Russia ceasefire talks

UK employers stay downbeat on hiring plans, surveys show

Both FTSE 100 and FTSE 250 up 0.6%

Updates after market close

May 12 (Reuters) - British stocks ended higher on Monday tracking a global market rally as the United States and China reached a deal to reduce tariffs, easing investor fears about an all-out trade war disrupting global markets.

The two biggest economies announced that the U.S. will cut the extra tariffs it imposed on Chinese imports in April to 30% from 145%, while Chinese duties on U.S. imports will reduce to 10% from 125%. The new measures will be effective for 90 days.

Both the blue-chip FTSE 100 .FTSE and the domestically focused midcap index .FTMC gained 0.6%.

Industrial metal miners .FTNMX551020 led the sectoral gains with 4.9% rise tracking gains in base metal prices. MET/L

Glencore GLEN.L and Anglo American AAL.L gained 6.1% and 5.5%, respectively.

Ukraine-focused miner Ferrexpo FXPO.L jumped 8.2%, after Ukrainian President Volodymyr Zelenskiy expressed readiness to meet his Russian counterpart Vladimir Putin in Turkey on Thursday for talks.

Energy stocks .FTNMX601010 gained 1.6% after oil prices jumped by about 4%. O/R

Heavyweight Shell SHEL.L and BP BP.L were among the top gainers in the FTSE 100, up 1.4% and 2.2%, respectively.

Burberry Group BRBY.L and Watches of Switzerland Group WOSG.L gained 3.7% and 4.9%, respectively, tracking gains in European luxury peers.

Meanwhile, precious metal miners stocks .FTNMX551030 fell 5.5% after safe-haven gold fell more than 2%. GOL/

Separately, Bank of England monetary policymaker Megan Greene said that wage and inflation measures were moving in the right direction but remained too high and that she was worried about rising public inflation expectations.

Economic surveys point to growing pessimism among British employers regarding hiring plans after recent tax hikes and surging uncertainty in the global economy, aligning with BoE's forecasts for a weakening labour market.

(Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Shailesh Kuber)

((Ragini.Mathur@thomsonreuters.com;))

For related prices, Reuters users may click on - *  UK stock report     .L     FTSE index:         0#.FTS6  techMARK 100 index: .FTT1X         FTSE futures:     0#FFI:  Gilt futures:       0#FLG:         Smallcap index:    .FTSC  FTSE 250 index:     .FTMC          FTSE 350 index:    .FTLC  Market digest:      .AD.L          Top 10 by vol:     .AV.L  Top price gainers:  .NG.L          Top % gainers:     .PG.L  Top price losers:   .NL.L          Top % losers:      .PL.L 
     * For related news, click on - * UK hot stocks:      HOT and GB     Wall Street:          .N Gilts report:       GB/            Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks:       .T             HK stocks:           .HK Sterling report:    GBP/           Dollar report:      USD/
     * For company prices, click on - * Company directory:  UKEQ          By sector:          FTAX 
     * For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY  FTSE Eurotop 300 index........................... .FTEU3  DJ STOXX index................................... .STOXX  Top 10 STOXX sectors........................ .PGL.STOXXS  Top 10 EUROSTOXX sectors................... .PGL.STOXXES  Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S  Top 25 European pct gainers.................... .PG.PEUR  Top 25 European pct losers..................... .PL.PEUR 
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment