UK stocks rise after Trump hints at possible auto tariff reprieve
April 15 (Reuters) - UK's main indexes rose on Tuesday with financial shares leading the broad-based gains after U.S. President Donald Trump signalled possible exemptions on auto-related levies, while investors also assessed job market data for monetary policy insights amid global economic uncertainty.
As of 0958 GMT, the blue-chip FTSE 100 index (.FTSE), opens new tab was up 0.9% and the midcap index (.FTMC), opens new tab gained 0.5%.
Trump indicated he was considering adjusting the 25% tariffs on foreign auto and auto parts imports from Mexico, Canada and other regions. This followed Friday's exemption of smartphones, computers and other electronics from his "reciprocal" tariffs.
After recent market selloffs, investors seized on the positive news, pushing shares higher for the second consecutive session.
Luxury carmaker Aston Martin (AML.L), opens new tab and automotive parts supplier Dowlais Group (DWL.L), opens new tab advanced 4% and 2%, respectively.
Investment banking and brokerage service index (.FTNMX302020), opens new tab led gains, rising 3%, with investment firm 3I group (III.L), opens new tab topping the FTSE 100 with a 4% increase after Citigroup raised its target price on the stock.
Precious metal miners also strengthened as gold prices climbed, with investors turning to the safe-haven asset amid ongoing uncertainty about U.S. tariff plans. Fresnillo (FRES.L), opens new tab, Hochschild (HOCM.L), opens new tab and Endeavour Mining (EDV.L), opens new tab gained between 4% to 2%.
Aerospace and Defence index (.FTNMX502010), opens new tab climbed 2%, with Rolls Royce rising 2.4% after the Pentagon named Rolls-Royce Solutions America as the principal contractor for a potential sale of Eitan PowerPack engines to Israel.
Frasers (FRAS.L), opens new tab was among the top performers on the midcap index, up 3.3%, after the sportswear and fashion group announced an agreement with Australian footwear retailer Accent Group (AX1.AX), opens new tab to launch and operate Sports Direct across Australia and New Zealand.
On the data front, Britain's labour market weakened ahead of this month's tax hike on employers, but wage growth remained strong, complicating the job for the Bank of England, which is also expecting an economic hit from U.S. trade tariffs.
Investors were pricing a more than 90% probability on the BoE cutting rates by a quarter of a percentage point on May 8.
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