Commodities, construction gains boost UK shares

March 25 (Reuters) - British stocks closed higher on Tuesday amid optimism that U.S. tariffs might be less onerous than feared, with gains in the commodities and construction sectors leading the way.

The benchmark FTSE 100 .FTSE rose 0.3%, ending a three-session losing streak. The midcap FTSE 250 .FTMC was up 0.3%.

Investors are assessing the potential impact of impending reciprocal tariffs after U.S. President Donald Trump hinted on Monday that not all threatened levies scheduled for April 2 would be imposed and that some countries might get exemptions.

Industrial .FTNMX551020 and precious metal .FTNMX551030 miners gained 1.4% and 1.2% respectively, as safe-haven demand bolstered gold prices amid tariff-related uncertainty. GOL/

Energy stocks .FTNMX601010 climbed 1.1% as oil prices rose for a fifth day. O/R

Shell SHEL.L was the biggest boost to the FTSE 100, up 1.5%, after increasing its shareholder distribution policy and lowering its spending outlook.

Construction and materials .FTNMX501010 stocks led sectoral gains, up 1.5%. Construction firm Morgan Sindall MGNS.L surged 8.6% on an upbeat annual forecast.

Housebuilders .FTNMX402020 rose 0.5% after the government pledged 2 billion pounds ($2.6 billion) to build up to 18,000 social and affordable homes in England.

The retail .FTNMX404010 sector, however, fell 1.8% as British retailers reported their steepest sales drop in March for eight months.

Still, most focus remains on events later in the week.

UK inflation data is due on Wednesday, as is a budget update from finance minister Rachel Reeves in which the Office for Budget Responsibility is expected to roughly halve Britain's projected growth in 2025 from 2% to about 1%, according to the Financial Times.

U.S. Personal Consumption Expenditure data, the Federal Reserve's preferred inflation gauge, is also due later in the week.

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