London stocks gain after US-China agreement on tariff reductions

Ferrexpo

12/05/2025 11:46

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window

FTSE 100 up 0.35%, FTSE 250 rises 1%

May 12 (Reuters) - Britain's main indexes rose on Monday along with the global markets after the United States and China agreed to temporarily reduce tariffs, easing investor concerns about the trade war between the world's two largest economies.

By 1021 GMT, the blue-chip FTSE 100 .FTSE was up 0.35%, while the domestically focused midcap index .FTMC advanced 1%.

The U.S. will cut extra tariffs it imposed on Chinese imports in April to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the two countries said on Monday after talks in Geneva. The new measures are effective for 90 days.

The Geneva meetings were the first face-to-face interactions between senior U.S. and Chinese economic officials since U.S. President Donald Trump launched a global tariff blitz, imposing particularly hefty duties on China.

Industrial metal miners .FTNMX551020 led the gains on both FTSE 100 and FTSE 250, as base metal prices rose following the news.

Glencore GLEN.L, Antofagasta ANTO.L and Anglo American AAL.L, all climbed nearly 7%.

Ukraine-focused miner Ferrexpo FXPO.L jumped 11%, topping the midcap performers, after Ukrainian President Volodymyr Zelenskiy expressed readiness to meet his Russian counterpart Vladimir Putin in Turkey on Thursday for talks.

Luxury goods makers also rallied with Burberry Group BRBY.L and Watches of Switzerland Group WOSG.L rising rising 6.7% and 3%, respectively.

On the flip side, the healthcare subindex .FTNMX201030 dropped 2.4% after Trump said on Sunday he would sign an executive order to cut prescription prices to the level paid by other high-income countries, an amount he put at 30% to 80% less.

In other developments, Britain's foreign minister will host European peers on Monday to discuss support for Ukraine and greater regional defence cooperation in the run-up to Prime Minister Keir Starmer's summit with European Union leaders next week.

Separately, economic surveys released on Monday point to growing pessimism among British employers regarding hiring plans after recent tax hikes and surging uncertainty in the global economy, aligning with Bank of England forecasts for a weakening labour market.

 (Reporting by Ragini Mathur in Bengaluru; Editing by Shailesh Kuber)

 ((Ragini.Mathur@thomsonreuters.com;))

For related prices, Reuters users may click on - *  UK stock report     .L     FTSE index:         0#.FTS6  techMARK 100 index: .FTT1X         FTSE futures:     0#FFI:  Gilt futures:       0#FLG:         Smallcap index:    .FTSC  FTSE 250 index:     .FTMC          FTSE 350 index:    .FTLC  Market digest:      .AD.L          Top 10 by vol:     .AV.L  Top price gainers:  .NG.L          Top % gainers:     .PG.L  Top price losers:   .NL.L          Top % losers:      .PL.L
     * For related news, click on - * UK hot stocks:      HOT and GB     Wall Street:          .N Gilts report:       GB/            Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks:       .T             HK stocks:           .HK Sterling report:    GBP/           Dollar report:      USD/
     * For company prices, click on - * Company directory:  UKEQ          By sector:          FTAX
     * For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY  FTSE Eurotop 300 index........................... .FTEU3  DJ STOXX index................................... .STOXX  Top 10 STOXX sectors........................ .PGL.STOXXS  Top 10 EUROSTOXX sectors................... .PGL.STOXXES  Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S  Top 25 European pct gainers.................... .PG.PEUR  Top 25 European pct losers..................... .PL.PEUR