FTSE 100 Gains Amid Trump's Trade Tariff Threats

The FTSE 100 index marginally rose as UK investors monitored U.S. economic developments and Trump's trade tariff threats. Housebuilders gained due to falling UK bond yields, while Aston Martin and Pets at Home faced declines. Key U.S. data could influence future Federal Reserve and Bank of England actions.

The UK's FTSE 100 index showed a slight increase on Wednesday amid investor concerns over U.S. President-elect Donald Trump's announced tariffs and anticipation of upcoming U.S. economic data.

In Wednesday trading, the blue-chip FTSE 100 moved up 0.1% by midday, paralleled by a 0.2% rise in the midcap FTSE 250, following a notable previous selloff due to Trump's tariff threats. Among the day's movers, Anglo American appreciated 2.1% post-sale of further shares in Anglo American Platinum, generating gross proceeds worth 9.6 billion rand (420.26 million pounds).

Housebuilders and real estate stocks advanced by 1% and 0.7%, respectively, benefiting from declining UK government bond yields since Finance Minister Rachel Reeves revealed her inaugural budget on Oct. 30. Observers also focused on French political developments which are negatively affecting French stocks and bonds due to uncertainty regarding the country's new government and its budget.

Later on Wednesday, several critical U.S. economic data points, including the Federal Reserve's inflation gauge and a labor market report, are expected to provide clues on forthcoming policy moves by the U.S. central bank. Meanwhile, market participants largely forecast that the Bank of England will maintain current interest rates in December.

Aston Martin's shares dipped over 9% to reach a two-year low following its warning of an 11% potential drop in annual profits due to delivery delays, alongside announcing a plan to raise new capital. Similarly, Pets at Home Group underwent a 13.5% slump, after projecting modest profits until the fiscal year ending March 2025, with waning demand among conservative-spending pet owners.

The budget airline EasyJet saw a minor uptick after sharing plans to increase passenger volumes for FY25. (1 British pound equals 22.8429 rand)

(With inputs from agencies.)