UK Stock Markets Waver Amid Trump's Tariff Tensions

UK shares showed little movement as investors reacted cautiously to Trump's tariff threats, signaling potential global trade tensions. The FTSE indices experienced minimal changes, while surprising retail sales data offered a slight economic boost. Energy stocks dipped as oil prices fell due to demand concerns.

UK shares remained subdued on Friday as investors shied away from significant bets following U.S. President Donald Trump's latest tariff threats, intensifying concerns of a full-scale global trade conflict.

The FTSE 100 Index slightly increased by 0.06% around midday and seemed poised for a stable week, while the FTSE 250 fell marginally by 0.02%, heading for its sixth consecutive weekly loss. Trump's announcement of a 25% tariff on auto imports, effective next week, has heightened global trade tensions and sent shocks through worldwide stock markets.

Investor focus now shifts to the new tariffs the U.S. plans to unveil on April 2, which Trump hinted may differ from the expected reciprocal measures. Interestingly, UK retail sales defied projections by rising in February, giving a boost to Finance Minister Rachel Reeves' plans to rejuvenate the sluggish economy. Figures showed the national economy grew modestly by 0.1% in late 2024.

(With inputs from agencies.)