Banks, miners help UK stocks recover ground after selloff
March 5 (Reuters) - UK shares broadly recovered ground on Wednesday, after declining in the previous session, as investors looked for any possible reprieve from U.S. tariffs.
The FTSE 100 (.FTSE), opens new tab rose 0.5% at 1050 GMT, while the domestically focussed midcap FTSE 250 (.FTMC), opens new tab climbed 1.3% after notching its worst session in seven months on Tuesday. The small cap index (.FTSC), opens new tab gained 1%.
The blue-chip index fell from record highs in the prior session after U.S. President Donald Trump's new tariffs on top trading partners took effect.
However, comments from the U.S. Commerce Secretary about possible exemptions to Mexican and Canadian duties kept hopes for negotiations afloat.
Trump's comments that Ukraine was ready to negotiate for an end to the war with Russia also helped lift sentiment, after a sharp clash with President Volodymyr Zelenskiy last week.
The index tracking precious metal miners (.FTNMX551030), opens new tab leapt 3.6%, the biggest sectoral gainer. Financial shares also lifted the FTSE 100 (.FTSE), opens new tab, with the bank sector (.FTNMX301010), opens new tab up 2.2% after dropping more than 3% on Tuesday.
UK bond yields rose, tracking a selloff in longer-dated German bonds, after the parties hoping to form the new German government agreed to overhaul borrowing rules and increase government spending, particularly on defence.
The UK defence sector (.FTNMX502010), opens new tab rose 2.5%. Other economically sensitive sectors also gained, with construction and materials (.FTNMX501010), opens new tab as well as travel and leisure (.FTNMX405010), opens new tab up more than 2% each.
On the data front, the UK S&P Services Purchasing Managers' Index slipped slightly to 51 in February from 51.1, but the survey showed services firms cut staff at the fastest pace since 2020 ahead of next month's tax and minimum-wage hikes.
Among individual stocks, shares of Games Workshop (GAW.L), opens new tab jumped 5.6% to the top of the FTSE 100 after the miniature wargame maker forecast 2025 profit above expectations.
Shares of Flutter (FLTRF.L), opens new tab rose 3.2% after the world's largest online betting company predicted a 34% jump in annual profit.
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