(Reuters) – Britain’s main indexes recovered from their lowest levels in more than a year on Tuesday, as investors look for any indication of Washington softening its stance on the aggressive tariffs that have roiled global markets over the last few days.
The blue-chip FTSE 100 rose 1.4%, as of 1000 GMT, after falling for four consecutive sessions.
The domestically focused midcap index also gained 2.5%, after hitting its lowest point since November 2023 in the previous session.
Markets had been unsettled by U.S. President Donald Trump’s announcement of sweeping trade tariffs last week, stoking fears of a global recession.
Trump said on Monday he would talk to China, Japan and other countries over the tariffs, but was not looking at a pause on the duties.
Separately, data from funds network Calastone showed British investors had piled into U.S. stocks in the weeks before Trump’s tariff announcement.
During the day, 94 of the FTSE 100 stocks gained.
UK’s aerospace and defence index rose more than 5%, with Babcock International Group leading the gains on the blue-chip index, followed by Rolls-Royce and BAE Systems.
The energy index climbed 3% as oil prices rebounded from a near four-year low in the previous session.
Industrial metal miners gained 2%, with Glencore advancing 3% after indigenous groups in Peru stopped blocking access to the company’s Antapaccay copper mine following an agreement with government officials.
Company-wise, Howden Joinery rose 2% after the kitchen and joinery supplier said Jackie Callaway would succeed Paul Hayes as the chief financial officer.
Investment firm 3i Group has paused the sale process of pet food maker MPM to assess the impact of U.S. tariffs, Bloomberg News reported on Monday. Its shares rose 3%.
(Reporting by Ragini Mathur in Bengaluru; Editing by Shilpi Majumdar)
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