FTSE 100 Climbs Amid Tariff Concerns and Sterling Surge

The UK's FTSE 100 index experienced a modest rise driven by interest rate-sensitive housing and real estate stocks amid tariff threats from U.S. President-elect Trump. Sterling surged as U.S. data hinted at possible rate cuts. Meanwhile, Anglo American shares went up, while Aston Martin and Pets at Home declined.

The UK's FTSE 100 index saw a slight increase on Wednesday as investors evaluated the impact of U.S. President-elect Donald Trump's tariff threats. Lower government bond yields supported housing and real estate stocks.

Both the FTSE 100 and the midcap FTSE 250 rose by 0.2%, stabilizing following a sell-off caused by Trump's tariff threats on major trade partners. The decline in UK government bond yields, last seen since Rachel Reeves' budget announcement on Oct. 30, benefitted housebuilders and real estate stocks, which rose by 0.9% and 1.5% respectively.

Sterling appreciated by 0.9% against the dollar after U.S. data indicated a fall in new orders for manufactured capital goods, raising expectations for a rate cut by the Federal Reserve in December. In the corporate sector, Anglo American's shares increased after selling more shares in its Amplats unit. Conversely, Aston Martin and Pets at Home experienced declines due to profit warnings and modest growth forecasts.

(With inputs from agencies.)