Banks, consumer stocks lift UK shares; investors unmoved by fresh tariff threats
By Sanchayaita Roy
Sept 26 (Reuters) - London stocks rose on Friday, led by banks and consumer discretionary shares, while investors showed little reaction to fresh tariff threats from U.S. President Donald Trump.
The benchmark FTSE 100 .FTSE gained 0.8% and posted a weekly gain of 0.74%. The mid-cap FTSE 250 .FTMC rose 0.4% on the day, and was also up 0.4% over the week.
Heavyweight bank stocks .FTNMX301010 rose 1.7% after Citigroup strategists kept their "overweight" recommendation on Europe's banking sector.
HSBC HSBA.L and NatWest NWG.L were among its top picks, and their shares were 1.3% and 3% higher, respectively.
Travel and leisure .FTNMX405010 stocks added 1.6%, led higher by a 4% gain for InterContinental Hotels Group IHG.L after JPMorgan double upgraded it to overweight from underweight. IHG was the top percentage gainer on the FTSE 100.
Oil major Shell SHEL.L and BP BP.L rose 1.3% and 1.2%, lifting the broader energy index .FTNMX601010 as oil prices climbed on Friday. O/R
Trade tensions resurfaced after Trump on Thursday announced a fresh round of punishing tariffs on a broad range of imported goods, including 100% duties on branded drugs.
Britain said on Friday it was engaging with Washington over the pharmaceutical measures, hoping for a favourable outcome.
The British pharma and biotech sub-index .FTNMX201030 rose 0.6%.
"AstraZeneca could be better placed than some of its European rivals, due to promised extra investment in the United States," said Kathleen Brooks, research director at XTB, also highlighting Trump's promise to treat the UK differently on these tariffs.
"The FTSE 100 could be a relative 'safe haven' in the middle of this latest tariff storm."
AstraZeneca AZN.L said on Friday it will sell its diabetes and asthma drugs direct to cash-paying U.S. patients at a discount of up to 70% off list prices.
Babcock BAB.L rose 3.2% after brokerage Berenberg raised its target price on the stock.
According to a survey, Britain's longer-term inflation expectations rose to 4.1% in September, up from 3.9% in August.
In the U.S., the latest inflation data met expectations, easing concerns that persistent price pressures could delay interest rate cuts by the Federal Reserve.
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