The FTSE 100 experienced a positive trading session, rising 1.4% and continuing its upward trend for the fourth consecutive day. Market sentiment was buoyed by indications that US President Trump may consider additional tariff exemptions, particularly for vehicle imports, which could positively impact UK auto part manufacturers. However, countervailing pressures arose from US probes targeting semiconductor and pharmaceutical imports, placing UK drugmakers under scrutiny. Financial and rate-sensitive stocks led the gains, while individual stock performances varied.
- The FTSE 100 increased by 1.4% on Tuesday.
- Gains extended for a fourth consecutive session.
- US President Trump is considering temporary exemptions on vehicle import tariffs.
- UK auto part makers could benefit from these exemptions.
- Trump pushed ahead with probes targeting semiconductor and pharmaceutical imports.
- AstraZeneca and GSK are in focus due to the probes.
- Financials and rate-sensitive stocks were among the top gainers.
- B&M gained 5.8% due to stronger-than-expected profits and CEO succession progress.
The market’s movement suggests a sensitivity to US trade policy, particularly regarding tariffs. Sectors poised to benefit from tariff exemptions saw gains, while those facing potential trade-related scrutiny experienced more uncertainty. This creates a mixed outlook, with specific sectors benefiting from external factors while others face potential headwinds. Individual company performance remains critical, as evidenced by B&M’s performance driven by internal factors rather than broader market trends.