UK stocks experienced a significant rebound on Tuesday, recovering from a recent slump driven by concerns surrounding escalating global tariffs. The FTSE 100 index showed considerable strength, posting a substantial gain and ending a period of consecutive losses. Aerospace and defence sectors led the recovery, with notable performances from specific companies.
- The FTSE 100 rallied by 2.7% to close at 7,910.5 on Tuesday.
- The index ended a four-day losing streak.
- The losing streak was triggered by escalating global tariff tensions.
- Since the tariff announcements, the index had fallen around 11%.
- Approximately £235 billion in market value was wiped out during the downturn.
- Rolls-Royce (+6.8%) and BAE Systems (+4.6%) were among the top performers.
- Experian, Hiscox, IAG, Games Workshop Group and Polar Capital Technology all advanced more than 5%.
This data indicates a market correction after a period of significant decline. The strong performance of specific sectors, particularly aerospace and defence, suggests a potential shift in investor sentiment towards these areas. The index’s recovery, while substantial, follows a notable value loss, implying that market sensitivity to global economic factors, such as tariff disputes, remains high. The listed companies advancing suggests that investors may be seeing opportunities for growth in those industries.