London stocks fall as Trump's tariff proposal sparks selloff
Diageo joins sell-off in European spirits makers
Melrose jumps after J.P.Morgan raises price target
British retailers' optimism falls to a two-year low
FTSE 100 down 0.4%, FTSE 250 down 0.9%
Updates to market close
By Sruthi Shankar and Nikhil Sharma
Nov 26 (Reuters) -The main UK stock indexes eased from multi-week highs on Tuesday after U.S. President-elect Donald Trump's latest tariff proposal for some of the country's biggest trading partners sparked risk-off moves across global markets.
The blue-chip FTSE 100 .FTSE fell 0.4% after touching a one-month closing high in the previous session. The FTSE 250 midcap index .FTMC dropped 0.9% after hitting a near one-month high on Monday.
Trump said on Monday he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs and migrants crossing the border. He separately outlined "an additional 10% tariff, above any additional tariffs" on imports from China.
European stocks came under pressure, with China-exposed automakers slipping the most. The dollar gained ground against the Mexican peso and the Canadian dollar.GLOB/MKTS
"There has been a view among some investors that Trump's tariff talk was a negotiating tactic, a threat rather than a promise. That might still end up the case, but it's clear that the president-elect has no intention of backing down for now," Dan Coatsworth, investment analyst at AJ Bell.
Shares of heavyweight miners Glencore GLEN.L and Rio Tinto RIO.L were down 2.8% and 1.8%, respectively, as copper prices dipped on details of proposed tariffs on top metals consumer China. MET/L
Spirits maker Diageo DGE.L slipped 1.6%, echoing a weak sentiment among European brewers and distillers on tariff risks.
Meanwhile, British retailers' optimism fell to a two-year low following finance minister Rachel Reeves' first budget as they brace for higher employment costs and soft consumer demand, the Confederation of British Industry said in its quarterly survey.
Among other stocks, Melrose Industries MRON.L climbed 7.7% after J.P.Morgan raised its price target on the aerospace parts maker to 850 pence from 650 pence, saying the stock is "significantly undervalued."
Shares in Halfords HFD.L jumped about 13% after the British bicycle and car products retailer beat first-half profit expectations and said it would nearly double the number of sites offering its Fusion motoring services.
Reporting by Sruthi Shankar and Nikhil Sharma in Bengaluru; Editing by Shinjini Ganguli and Jonathan Oatis
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
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
