By Sanchayaita Roy and Ragini Mathur
(Reuters) -British equities closed higher on Friday, as investors assessed fresh comments from U.S. President Donald Trump regarding tariffs on China ahead of a key weekend meeting between the two countries, with energy and mining stock providing further boost.
The blue-chip FTSE 100 rose 0.3%. The index completed 16 straight days of gains on Tuesday, its longest winning streak on record, powered by strong first-quarter earnings and optimism over easing global trade tensions.
However, the index posted a slight loss for the week.
Meanwhile, the midcap index gained 0.2%, posting its fifth consecutive week in green.
Trump said in a Truth Social post that Beijing should open up its market to the U.S. and that 80% tariffs on Chinese goods “seems right”. The levies are currently at 145%.
The comment comes ahead of this weekend’s U.S. and China meetings in Switzerland, with investors hoping the talks will ease the trade war that has spurred worries over global economic growth.
Meanwhile, on Thursday, investors cheered a trade deal struck between Britain and the U.S. – the first of its kind since Trump paused his initial tariffs last month.
“With the UK having basked in trade deal glory yesterday, the spotlight has now turned to China,” said Russ Mould, investment director at AJ Bell.
“China is America’s biggest rival in the trade war and any sign of a compromise in their tit-for-tat tariff spat could be taken positively by markets … something that could easily put investors back in risk-on mode.”
Heavyweight BP rose 4.7%, the top gainer in the FTSE 100 index, on reports of additional takeover interest from rivals. The energy subindex gained nearly 2%.
Precious metal miners led the sectoral gains with 2.1% rise after gold rose over 1%. [GOL/]
British Airways owner IAG gained 2.4%, after the British Airways owner reported a better-than-expected first-quarter profit and maintained its outlook for 2025.
Travis Perkins jumped 6.9% to the top of the midcap index after the building materials supplier appointed Gavin Slark as its new CEO.
(Reporting by Sanchayaita Roy and Ragini Mathur in Bengaluru; Editing by Shinjini Ganguli and David Evans)
