In a significant boost to the UK's financial markets, shares experienced a notable uptick following the United States' decision to exempt Britain from newly imposed tariffs on steel and aluminum imports. The FTSE 100 index rose by 0.3%, while the FTSE 250 increased by 0.5% by mid-morning. This development alleviated some of the trade tensions that have been affecting markets in recent months. The announcement, confirmed in a proclamation by U.S. President Donald Trump, provided a sense of relief to investors concerned about escalating trade disputes. The exemption is expected to positively impact various sectors, particularly those involved in metal mining and manufacturing, by reducing potential costs associated with tariffs.
The positive market sentiment was further supported by the performance of metal miners, who benefited from stabilized gold and copper prices, posting gains over 1%. Notably, electronics firm DiscoverIE led the FTSE 250 with an 11.2% jump after reporting a 4% rise in adjusted pretax profits. Conversely, retailer B&M saw a decline of 6.2% due to disappointing annual sales, which were affected by weak consumer demand and inflation. Additionally, the S&P Global PMI indicated a mild recovery in the UK's services sector for May, suggesting a gradual rebound in economic activity. While U.S. trade negotiations continue with limited progress, Britain's earlier limited trade agreement with the U.S. has boosted market confidence. The FTSE 100 now trades near its all-time highs, supported by perceived stability and maturity, which has attracted international investors.