London stocks gain despite lingering US tariff uncertainty

May 30 (Reuters) - British equities ended higher on Friday, but trimmed initial gains after U.S. President Donald Trump accused China of violating a tariff agreement, while investors assessed U.S. consumer spending data.

"China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!," Trump said on his Truth Social platform.

The blue-chip FTSE 100 .FTSE gained 0.6% and the midcap FTSE 250 .FTMC rose 0.1%.

Despite continued concerns over Trump's erratic tariffs, the benchmark index posted its best month in four.

The mid-cap index posted its best month since July 2024.

Investors in Britain remained optimistic over easing trade tensions with Washington after the U.S. and UK announced a limited bilateral trade agreement earlier this month

Across the Atlantic, data showed, U.S. consumer spending increased marginally in April, with the year-on-year reading increasing to 2.1% after advancing 2.3% in March.

Meanwhile, Bank of England policymaker Alan Taylor dismissed inflation concerns and called for lower interest rates. Taylor was one of the two members who had voted for a bigger half-point cut in May. The BoE had cut interest rates by quarter of a percentage point.

Additionally, a survey showed that the British public's expectations for inflation over the year ahead fell in May to 4% from 4.2%.

Among stock-related moves, insurer and asset manager M&G MNG.L gained the most in the FTSE 100, up 5.5%, after Japan's Dai-ichi Life Holdings 8750.T said it plans to buy a 15% stake.

On Friday, global stocks headed for their best month since late 2023 and the dollar was flirting with its first monthly rise of the year. MKTS/GLOB

Markets have been see-sawing this week as investors tried to ride out a rollercoaster news flow after a U.S. court blocked most of Trump's tariffs this week, and a U.S. appeals court temporarily reinstated the levies.

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