(Reuters) -The UK’s FTSE 100 closed at a three-week high on Tuesday as a weaker pound lifted shares of international firms, while investors scrutinised ongoing U.S. tariff negotiations.
The internationally oriented FTSE 100 rose 0.5% to its highest close since June 17, while the FTSE 250 midcap index gained 0.2%.
Major Asian economies Japan and South Korea said they would try to negotiate with the United States to soften the blow from sharply higher tariffs after President Donald Trump ramped up his trade war yet again and imposed higher tariffs on 14 nations, starting August 1.
Britain and Vietnam are the only countries with trade deals with the U.S. so far, avoiding the new levies. However, in case of the UK, existing tariffs on autos, steel and aluminium still apply.
Oil and gas stocks led sectoral gains, rising 2.2% as crude prices hovered near two-week highs. [O/R]
Energy giant BP rose 3.2%, topping the blue-chip index, while Shell gained 2%.
Precious metal mining stocks declined 2.3%, leading sectoral losses as gold prices fell on expectations of trade agreements between the U.S. and its partners. [GOL/]
Mining giant Rio Tinto’s yet-to-be-named CEO should be open to merger and acquisition deals along with sharpening productivity and cost cuts, sources told Reuters. The miner’s shares rose 1.3%, while Glencore was up 2.8% and Anglo American rose 1.2%.
Victrex fell 8.4% to the bottom of the midcap index after the polymer manufacturer appointed a new CEO and gave a tepid second-half profit forecast.
Fast fashion retailer Shein joined the list of companies moving away from the UK stock market after it filed for an IPO in Hong Kong to accelerate its listing process, building pressure on Britain’s regulators to approve its planned London listing, the Financial Times reported, as the UK IPO market struggles amid investor pushback and Brexit-related challenges.
(Reporting by Twesha Dikshit and Ankita Yadav; Editing by Vijay Kishore and Pooja Desai)
