FTSE 100 Rallies Amid Trade War Tensions

The UK's FTSE 100 surged, led by mining shares, amid trade tensions as China raised duties on U.S. imports. China's response follows Trump's tariff hikes. Precious metal miners topped gains, while BP's decline impacted the energy index. Britain's economy beat GDP expectations, affecting rate cut forecasts.

The FTSE 100 index in the United Kingdom continued its upward momentum on Friday, driven by robust performances in the mining sector. This comes amidst heightened trade war concerns between the United States and China, following Beijing's decision to impose a 125% duty on American imports.

By 1040 GMT, the FTSE 100 had climbed 0.9%, building on its biggest single-day gain in three years recorded on Thursday. Additionally, the midcap index saw a 0.16% rise. This reaction is in response to President Donald Trump's increased tariffs on Chinese goods, escalating to 145%.

The financial markets have seen volatility following Trump's tariff announcements. Precious metal miners Fresnillo and Endeavour Mining were standout performers, each rising by 5% as bullion prices increased. Conversely, the energy index dipped 1.2%, with BP falling 2% due to anticipated weaker earnings in its gas marketing sector and rising net debt.

(With inputs from agencies.)