FTSE 100 Stumbles Amid Geopolitical Easing, Midcap Index Achieves Major Gains
The FTSE 100 index declined by 0.4% as momentum from eased geopolitical tensions waned, despite the midcap FTSE 250 logging its largest quarterly gain in nearly five years. Domestic midcap stocks remain resilient against tariff disruptions. Key sector movements included gains in aerospace due to a U.S.-UK trade deal.
The blue-chip FTSE 100 index ended the trading day lower, impacted by waning relief over geopolitical tensions and U.S. tariff issues. Despite the downturn, the midcap FTSE 250 celebrated its biggest quarterly gain in nearly five years, highlighting strength among domestic stocks.
Internationally inclined, the FTSE 100 slipped 0.4%, securing back-to-back quarterly gains, while the FTSE 250, focused on domestic equities, marked a 11% rise over the quarter, buffered from tariff disruptions. This resilience is partly due to the UK's exclusive trade deal with the United States.
Aerospace and defense sectors saw a 1.2% rise, supported by a 1.4% increase in Rolls-Royce stocks, as the U.S.-UK trade agreement abolished the 10% tariff on aircraft components. Key developments, including a decline in WH Smith shares following lower-than-anticipated sale returns, were amid a broad expectation of slowing UK economic growth.
(With inputs from agencies.)
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