(Reuters) – UK shares tracked global equities lower on Tuesday, after the U.S. hit top trading partners with new tariffs, while falling oil prices weighed on shares of energy companies.
The blue-chip FTSE 100 was down 0.3% at 1100 GMT, slipping off the previous session’s record close. The midcap FTSE 250 lost 0.8%, trading around a seven-week low.
U.S. President Donald Trump’s new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, while duties on Chinese goods were doubled to 20%.
That also fuelled fears that threatened reciprocal tariffs could go into effect next month. The move sent global equities lower while safe haven assets such as government bonds gained in price.
Meanwhile, oil and gas was the biggest sectoral decliner, falling 3% to its lowest in over a month after OPEC+ decided to proceed with a planned April oil output increase, the first since 2022. [O/R]
Shares of Shell dipped 2.6% after the company announced an overhaul of its executive team.
However, defence stocks gained 2%, set for a seventh straight session of gains.
British finance minister Rachel Reeves said she wants to speed up the procurement of defence equipment, while the European Commission proposed a new joint borrowing plan as part of an 800-billion-euro effort to lift defence spending.
Other defensive sectors rose, with the pharmaceutical and biotechnology index up over 1.7%. Precious metal miners rose 1.1% as gold prices gained as investors sought more safe havens.
Among individual stocks, equipment rental company Ashtead fell 4.8% to the bottom of the FTSE 100 after missing profit and revenue estimates.
Shares of baker Greggs slumped 11% after sales growth slowed at the start of the year, and the company warned of a difficult year ahead.
Abrdn, however, leapt 11% after unveiling a new strategy, including a change of name to “aberdeen,” while Intertek jumped 7% after raising margin expectations.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Shreya Biswas)
