UK's FTSE 100 Dips Amid Growth Concerns and Tariff Tensions
The UK's FTSE 100 fell 0.4% due to concerns over domestic growth and U.S. tariff policies. Despite this, it recorded a significant weekly gain driven by miners. The UK economy's contraction added to pressures, while the Bank of England contemplates interest rate cuts amid Donald Trump's escalating tariff threats.
On Friday, the UK's leading financial index, the FTSE 100, experienced a downturn as uncertainty loomed over domestic economic growth and the potential impact of U.S. tariff policies.
Despite a 0.4% dip, the FTSE 100 achieved its most substantial weekly rise in two months, buoyed by a surge in metal prices following President Donald Trump's tariff announcements on imported copper. Economic data revealed an unexpected contraction in the UK economy for a second consecutive month, raising alarm for the government grappling with global challenges.
Market sentiment anticipates a possible interest rate cut by the Bank of England next month, with traders weighing in a substantial likelihood of a 25 basis point reduction, influenced by Trump's tariff plans targeting Canada and other partners. Meanwhile, energy giant BP saw a 3.4% share rise due to optimistic production forecasts.
(With inputs from agencies.)
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