London stocks edge down amid ongoing tariff concerns
May 6 (Reuters) - British stocks edged lower on Tuesday, after a holiday closure on Monday, due to lingering tariff concerns and their economic impact, with attention shifting to upcoming Bank of England and U.S. Federal Reserve policy decisions.
By 1019 GMT, the FTSE 100 (.FTSE), opens new tab was down 0.2%, poised to end its 15-session winning streak.
The domestically focused midcap index (.FTMC), opens new tab also retreated 0.1%, on track to break its eight-session upward run.
Investors have recently hoped for easing U.S.-China trade tensions, but limited details have kept markets struggling to interpret the headlines coming out of the White House.
On Sunday, U.S. President Donald Trump slapped a 100% tariff on movies produced outside the United States, while on Monday, he said he plans to announce pharmaceutical tariffs over the next two weeks.
Attention now shifts to Bank of England policy decision, with expectations of a 25-basis-point rate cut on Thursday. The accompanying statement will be closely watched, as some investors call for a faster rate-cut approach due to global growth impacts from Trump's tariffs.
Meanwhile, U.S. Federal Reserve policymakers are likely to maintain current interest rates at Wednesday's meeting.
On the bluechip index, Anglo American (AAL.L), opens new tab fell 4.6%, after Peabody Energy (BTU.N), opens new tab said it may terminate the deal to buy the miner's Australian coal assets due to issues at Moranbah North mine.
An index of the UK's industrial metal miners (.FTNMX551020), opens new tab dropped 2%.
Oil major BP (BP.L), opens new tab inched up 1% after Bloomberg News reported on Saturday that rival Shell (SHEL.L), opens new tab is working with advisers to evaluate a potential acquisition of the company.
Shares of Deliveroo (ROO.L), opens new tab hit an over three-year high, as U.S. meal delivery firm DoorDash (DASH.O), opens new tab agreed to buy the British rival in a deal valued at about 2.9 billion pounds ($3.85 billion).
On the data front, Britain's services sector, accounting for much of the economy, shrank in April for the first time since October 2023 and at the fastest pace in over two years, according to a survey that showed U.S. tariff turmoil is hammering exports and sentiment.
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The Guardian
13 minutes ago
- The Guardian
UK petrol prices poised to rise as Israel-Iran conflict pushes up cost of oil
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The Independent
23 minutes ago
- The Independent
UK forces could defend Israel against Iranian attacks
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Telegraph
31 minutes ago
- Telegraph
China may lift sanctions on MPs
China is considering lifting sanctions on British MPs in a sign that relations between the two countries may be thawing. The sanctions were imposed in 2021 against five Members of Parliament, two members of the House of Lords and two other citizens. All were targeted for calling out China's human rights abuses against Uyghurs in Xinjiang province. China has repeatedly denied any human rights abuses in the province, despite mounting evidence of mass detention, forced labour and forced sterilisation, among other offences. Sir Keir Starmer has made a concerted effort to improve relations with China since he was elected Prime Minister and by advocating for ' a pragmatic and serious relationship '. In November he became the first UK leader to meet with Xi Jinping, the Chinese president, in more than six years and several members of his cabinet have visited China in the last year, including David Lammy, the Foreign Secretary, and Rachel Reeves, the Chancellor. These efforts seem to be paying off. A spokesperson for the Chinese embassy in London told The Guardian that 'China has always attached importance to developing relations with the UK and that [c]urrently, UK-China relations are showing a positive momentum'. The spokesperson added: 'Exchanges and dialogues between the UK and China at all levels and in all fields will help enhance mutual understanding and trust between the two sides, and will also help promote the continuous development of bilateral relations and practical cooperation, which benefit the two peoples.' The five MPs targeted by China were Iain Duncan Smith, the former Tory leader, Tom Tugendhat, Nusrat Ghani, Neil O'Brien and Tim Loughton. The two peers were David Alton and Helena Kennedy. All were banned from entering China, Hong Kong and Macau, any property they had in China was frozen, and they were blocked from doing business with any Chinese citizen or institution. The announcement that the sanctions could be lifted comes days after several senior-level Chinese officials were in the United Kingdom. He Lifang, China's vice-premier, and Wang Wentao, the commerce minister, were in London last week for trade talks with the United States where they met with Ms Reeves and Jonathan Reynolds, the Business and Trade Secretary, respectively. Liu Jianchao, who leads the Chinese Communist Party's international department, was also in town last week, though his three-day visit was not publicised at the time. He reportedly met with Mr Lammy and Jonathan Powell, the National Security Advisor. Liu, once believed to be a likely frontrunner for foreign affairs minister, has previously been accused of overseeing the forced repatriation of hundreds of overseas Chinese dissidents back to China, including some from the UK. It's unclear whether China is considering removing restrictions on all nine individuals or only some, but it would be a promising step forward for relations with the UK.
