Posted By Jessica Weisman-Pitts
Posted on November 26, 2024
By Sruthi Shankar
(Reuters) – The main UK stock indexes eased on Tuesday from multi-week highs after U.S. President-elect Donald Trump’s latest tariff proposal for some of the country’s biggest trading partners sparked risk-off moves across global markets.
The blue-chip FTSE 100 dipped 0.3% after touching a one-month closing high in the previous session. The FTSE 250 midcap index dropped 0.6% after hitting a near one-month high on Monday.
Trump said on Monday he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs and migrants crossing the border. He separately outlined “an additional 10% tariff, above any additional tariffs” on imports from China.
European stocks came under pressure, with China-exposed automakers slipping the most. The dollar gained ground against the Mexican peso, the euro and the Canadian dollar.[GLOB/MKTS]
“There has been a view among some investors that Trump’s tariff talk was a negotiating tactic, a threat rather than a promise. That might still end up the case, but it’s clear that the president-elect has no intention of backing down for now,” Dan Coatsworth, investment analyst at AJ Bell.
Spirits maker Diageo slipped 1.4%, echoing weak sentiment among European brewers and distillers on tariff risks.
Meanwhile, prices in British shops fell less sharply this month, according to a survey from the British Retail Consortium that suggested consumers could face renewed pressure on their spending power.
Compass Group rose 2.9% after the contract catering firm reported fiscal 2024 results that largely met market estimates after the group upgraded its profit and revenue forecasts twice.
Melrose Industries climbed 5.9% after J.P.Morgan raised its price target on the aerospace parts maker to 850 pence from 650 pence, saying the stock is “significantly undervalued.”
Shares in Halfords jumped about 11.8% after the British bicycle and car products retailer beat first-half profit expectations and said it would nearly double the number of sites offering its Fusion motoring services.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shinjini Ganguli)
