FTSE 100 climbs to 3-week high on EU tariff reprieve
May 27 (Reuters) - London stocks climbed on Tuesday in broad-based gains, in their first reaction to U.S. President Donald Trump's decision to postpone steep tariffs on the European Union.
By 1009 GMT, the blue-chip FTSE 100 (.FTSE), opens new tab was up 0.9% to its highest level since May 5. The mid-cap FTSE 250 (.FTMC), opens new tab gained 1.2%. The market was closed on Monday for a bank holiday.
The market dropped on Friday when Trump said he was recommending a 50% tariff on goods from the European Union, effective June 1. He backed away, opens new tab from the threat on Sunday and restored a July 9 deadline for trade negotiations.
On the day, aerospace and defense stocks (.FTNMX502010), opens new tab led the gains after Trump threatened additional sanctions on Russia. Melrose Industries (MRON.L), opens new tab and BAE Systems (BAES.L), opens new tab both rose more than 3%, ranking among the FTSE 100's top performers.
Specialty chemicals firm Elementis (ELM.L), opens new tab advanced 11.2% after agreeing to sell its talc business, opens new tab to IMI Fabi in a deal worth $121 million in enterprise value.
Jupiter Fund Management (JUP.L), opens new tab jumped 9.5% after Peel Hunt upgraded the money manager's stock to 'add' from 'hold'.
Luxury brand Burberry (BRBY.L), opens new tab gained 3% after Barclays upgraded the stock to 'equal-weight' from 'underweight'.
Precious metal miners (.FTNMX551030), opens new tab were the only group to decline, falling 3.7% in tandem with gold prices.
Investors are now focused on chip-giant Nvidia's results due Wednesday, alongside speeches from Federal Reserve policymakers and Friday's U.S. core PCE data, which could provide insights into the path of U.S. interest rates.
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