(Reuters) – UK shares were subdued on Friday as investors avoided big bets after U.S. President Donald Trump’s latest tariff threats intensified concerns about an all-out global trade war.
The blue-chip FTSE 100 was up 0.06% as of 1100 GMT, poised to end the week little changed. The midcap FTSE 250 index was down 0.02% and remained on track for its sixth consecutive weekly loss.
Trump announced a 25% tariff on auto imports on Wednesday, set to take effect next week, escalating global trade tensions and rattling stocks worldwide.
The focus is now on fresh tariffs the U.S. is due to announce on April 2. Trump indicated the measures may not be the like-for-like levies he has been pledging to impose.
Meanwhile, British retail sales unexpectedly rose in February, figures from the Office for National Statistics showed, defying most forecasts from analysts who had predicted a fall against a backdrop of weak overall growth in the economy.
While the sales remain below pre-pandemic levels, the unexpected uptick provides a welcome boost for Finance Minister Rachel Reeves, whose ambitions to kick-start the economy have been dogged by weak growth data since taking office last July.
The ONS also confirmed the economy expanded by 0.1% in the fourth quarter of 2024.
Home improvement retailer Kingfisher emerged as the top gainer on the blue-chip index, up 1.6%, following the positive retail data.
Supermarket group Sainsbury’s gained 1.3%.
SSE rose 2.1% after the power generator and network operator named company veteran Martin Pibworth as its chief executive.
On the flip side, WH Smith dropped 4% after the retailer agreed to sell its UK high street business to Modella Capital for 76 million pounds ($98 million) to streamline its operations and create a pure-play global travel retailer.
An index of UK’s energy companies was down 0.6% after oil prices fell amid tariff-related demand concerns.
Investors now await the U.S. Personal Consumption Expenditures data, the Federal Reserve’s preferred gauge for prices, scheduled for release later in the day.
(Reporting by Ragini Mathur in Bengaluru; Editing by Krishna Chandra Eluri)
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