The FTSE 100 gave up gains on Monday after hopes that President Trump would take a more targeted approach to tariffs lifted sentiment in early trade. However, UK-centric concerns mounted as the session progressed, dragging the index into the red.
Donald Trump’s suggestion that there could be some ‘flexibility’ in reciprocal tariffs marks a step down in Trump’s approach, although tensions around trade still remain.
Nonetheless, signs that Trump may still be using tariffs as a negotiating tactic—albeit taking them further than he did in his first term—buoyed equity bulls on Monday.
The FTSE 100 started the session strongly, but the rally faded as the session progressed. London’s leading index was 0.1% higher at the time of writing, while S&P 500 futures jumped over 1%.
Trump’s change in approach to tariffs would still leave metals in his sights, and copper prices reacted accordingly on Monday, helping provide support for London mining stocks.
“Mining stocks were the key driver for the FTSE 100 as Antofagasta, Anglo American and Glencore topped the leader board thanks to stronger copper prices,” said Russ Mould, investment director at AJ Bell.
“The base metal has been on a strong run of late as markets worry about the impact of tariffs, with copper traders racing to snap up supplies in case Trump imposes new levies akin to what’s already happened with aluminium and steel.”
Strength in China-centric stocks was offset by those companies with exposure to the UK as investors prepared for this week’s Spring Statement. Property companies were notably weaker, although the losses were relatively benign.
JD Sports was the top faller after analysts at Deutsche Bank slashed their price target to 85p. JD was 4% lower at 72p at the time of writing.
Polar Capital Technology Trust was among the risers as investors picked the trust’s stock up after a sharp sell-off in line with a pullback in US tech shares. The trust’s top ten holdings include Nvidia, Microsoft, Meta, Apple, and Broadcom.