British Equities Surge as Trade Tensions Ease Amid Tariff Drama
British stocks rose as the FTSE 100 and FTSE 250 ended higher. Investors mulled Trump's tariff accusations against China while benefiting from easing trade tensions. U.S. consumer spending data showed a slight increase, and BoE's Alan Taylor advocated for lower interest rates despite prevailing inflation concerns.
British equities closed higher on Friday, initially buoyed by hopes of easing U.S.-UK trade tensions. However, the gains were tempered after President Donald Trump accused China of breaching a tariff agreement. The blue-chip FTSE 100 climbed 0.6%, while the midcap FTSE 250 inched up 0.1%.
Investor optimism was sparked by an announced bilateral trade agreement between the U.S. and UK. Meanwhile, U.S. consumer spending saw a small uptick in April, though slightly down from a March rise. The Bank of England's Alan Taylor dismissed inflation worries and pushed for lower interest rates. The public's inflation expectation for the upcoming year dropped to 4%.
In the corporate sphere, M&G led FTSE 100 gains, surging 5.5% after Japan's Dai-ichi Life Holdings revealed plans to acquire a 15% stake. The week's global equity markets navigated fluctuating news, especially as U.S. courts debated the legality of Trump's tariffs.
(With inputs from agencies.)
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