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UK stocks rise after Trump hints at possible auto tariff reprieve

ReutersApr 15, 2025 10:15 AM
  • FTSE 100 up 0.9%, FTSE 250 rises 0.5%
  • Aston Martin and Dowlais Group rise on possible tariff reprieve
  • Investment banking firms leads gains
  • Data showed employers cut jobs in run-up to tax hike

- UK's main indexes rose on Tuesday with financial shares leading the broad-based gains after U.S. President Donald Trump signalled possible exemptions on auto-related levies, while investors also assessed job market data for monetary policy insights amid global economic uncertainty.

As of 0958 GMT, the blue-chip FTSE 100 index .FTSE was up 0.9% and the midcap index .FTMC gained 0.5%.

Trump indicated he was considering adjusting the 25% tariffs on foreign auto and auto parts imports from Mexico, Canada and other regions. This followed Friday's exemption of smartphones, computers and other electronics from his "reciprocal" tariffs.

After recent market selloffs, investors seized on the positive news, pushing shares higher for the second consecutive session.

Luxury carmaker Aston Martin AML.L and automotive parts supplier Dowlais Group DWL.L advanced 4% and 2%, respectively.

Investment banking and brokerage service index .FTNMX302020 led gains, rising 3%, with investment firm 3I group III.L topping the FTSE 100 with a 4% increase after Citigroup raised its target price on the stock.

Precious metal miners also strengthened as gold prices climbed, with investors turning to the safe-haven asset amid ongoing uncertainty about U.S. tariff plans. Fresnillo FRES.L, Hochschild HOCM.L and Endeavour Mining EDV.L gained between 4% to 2%.

Aerospace and Defence index .FTNMX502010 climbed 2%, with Rolls Royce rising 2.4% after the Pentagon named Rolls-Royce Solutions America as the principal contractor for a potential sale of Eitan PowerPack engines to Israel.

Frasers FRAS.L was among the top performers on the midcap index, up 3.3%, after the sportswear and fashion group announced an agreement with Australian footwear retailer Accent Group AX1.AX to launch and operate Sports Direct across Australia and New Zealand.

On the data front, Britain's labour market weakened ahead of this month's tax hike on employers, but wage growth remained strong, complicating the job for the Bank of England, which is also expecting an economic hit from U.S. trade tariffs.

Investors were pricing a more than 90% probability on the BoE cutting rates by a quarter of a percentage point on May 8.

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 
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