UK Markets Rise Amid U.S.-China Tariff Truce and Economic Data Insights

The UK's blue-chip index experienced gains on Tuesday, influenced by an extended U.S.-China tariff truce that positively impacted investor sentiment. Markets also focused on key economic data releases throughout the day.

At 0947 GMT, the FTSE 100 was up 0.3% with the midcap index remaining steady. A 90-day extension to the tariff truce between the world's largest economies temporarily allayed concerns over global trade, postponing potential triple-digit duties on Chinese exports to the U.S., which would have been damaging.

In the UK market, Spirax soared 13%, setting the pace on the blue-chip index, following an optimistic forecast for organic sales growth. Bellway recorded a 1.4% rise, expected to construct more homes in the new financial year, enhancing the housing sector index by 0.7%.

Atalaya Mining Copper saw a 7.1% uplift after increasing its copper production outlook for 2025, boosting the industrial metal miners index by 0.5%. Economic data highlighted a continued softening in Britain's job market with a decrease in payrolls for the sixth month and declining vacancies. Nonetheless, robust wage growth highlighted the Bank of England's cautious stance on interest rate reductions.

In light of a hiring slump and potential inflation pressures, the figures suggested a steady cooling in the labor market, although less sharp than before. Investors are now eyeing U.S. inflation data anticipating reflections of tariff-induced cost pressures as businesses pass costs to consumers. Domestically, the technology sector fell by 0.7%, with gambling firm Entain dropping 3.6% despite positive profit forecasts.

(With inputs from agencies.)