The FTSE 100 edged higher despite Donald Trump ramping up rhetoric on tariffs over the weekend.
Britain’s blue-chip index gained 0.2% even as the former U.S. president reiterated that there would be no exemptions to his metal tariffs.
Major stocks saw gains, with Shell rising 1.3%, Rio Tinto up 1.6%, and IAG climbing 2.4%. Market sentiment was also buoyed by expectations that both the U.S. Federal Reserve and the Bank of England will keep interest rates on hold, helping to ease investor concerns.
Phoenix Group led the gains, surging as much as 7.8%—its biggest jump since May—after reporting stronger-than-expected operating profits.
However, UK supermarket stocks dragged on the index amid concerns over intensifying competition. Tesco slumped as much as 4.3%, extending its two-day loss to 13%, its steepest drop since February 2021. Sainsbury’s also fell to its lowest level since March 2020, while M&S declined as well.
The sell-off followed Asda’s announcement on Friday of its most significant price cuts in 25 years, aimed at regaining market share. Clive Black of Shore Capital called the market’s reaction “a knee-jerk response, which is understandable,” while Jefferies analyst Frederick Wild questioned whether Asda could sustain the scale of discounts if volume growth fails to improve.
AstraZeneca shares also dipped after the pharmaceutical giant revealed plans to acquire Belgian biotech firm EsoBiotec for up to $1 billion, as it looks to expand its portfolio of next-generation cancer treatments.
