Market Jitters as UK Shares Tumble Amid Global Trade Tension

UK shares experienced a decline as investors remain cautious over global economic concerns and trade tensions fueled by tariffs. The FTSE 100 was flat but showed a second consecutive week of gains, while FTSE 250 witnessed a slight weekly recovery. U.S. tariff announcements remain a focal point.

UK shares edged lower on Friday, amidst growing investor caution over global economic concerns and rising trade tensions. The blue-chip FTSE 100, though flat, captured a 0.2% weekly gain, marking its second consecutive week of rise. Meanwhile, the midcap FTSE 250 fell 0.3%, though it ended the week flat after experiencing six consecutive weeks of losses.

Concerns increased after the U.S. Personal Consumption Expenditures price index saw its highest rise in 13 months. The market is now closely watching potential new tariffs from the U.S., which President Donald Trump has hinted may not be precisely equivalent to existing levies.

Aerospace and defense stocks witnessed declines, dragging down sectoral numbers significantly, with companies like Rolls Royce, BAE Systems, and Melrose Industries noting 1.3% to 4.6% drops. Industrial metal miners dropped 2.2% as copper prices dipped ahead of tariff deadlines. In contrast, SSE shares surged on the appointment of Martin Pibworth as CEO. Additionally, unexpected retail sales growth provided some economic optimism for Finance Minister Rachel Reeves.

(With inputs from agencies.)