UPDATE 1-Tariff turmoil pressures British stocks; mining shares provide support

Dow Jones Industrial Average -0.61%
S&P 500 index -0.67%
NASDAQ -1.00%

Dow Jones Industrial Average

DJI

41603.07

-0.61%

S&P 500 index

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5802.82

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NASDAQ

IXIC

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UK GDP growth beats expectations

BP drops after forecasting weak gas trading earnings

FTSE 100 up 0.6%, FTSE 250 flat

Updates after market close

- The FTSE 100 rose on Friday, with gains in mining stocks providing some support even as escalating fears over U.S.-China trade tensions left investors wary after a week of tariff-induced uncertainty.

The blue-chip FTSE 100 index .FTSE was up 0.6%. But the index fell 1.1% for the week, its second straight week of losses.

Meanwhile, the midcap FTSE 250 .FTMC was flat. The index gained 0.7% for the week.

Stocks have been on a roller-coaster ride over the past week due to tariff turmoil. MKTS/GLOB

Earlier this week, U.S. President Donald Trump paused duties for dozens of countries for 90 days, giving markets a brief reprieve, with British stocks recording their strongest session in three years.

But investors remained cautious due to ongoing U.S.-China trade tensions and recession fears. China on Friday raised its tariffs on U.S. imports to 125%, retaliating against Trump's raising duties on Chinese goods to 145%, intensifying the tit-for-tat trade war between the two biggest global economies.

Back home, Britain's economy returned to growth with a 0.5% expansion in February, beating economists' expectations and showing it was on a slightly firmer footing as it braces for the impact of U.S. tariffs.

After the stronger-than-expected GDP data, traders curbed their Bank of England rate cut expectations.

Rate-sensitive British bank .FTNMX301010 stocks were up 0.8%, also lifted by positive corporate results from U.S. peers. HSBC Holdings HSBA.L was among the top gainers in the FTSE 100, up 2.7%.

Precious metal miners Fresnillo FRES.L and Endeavour Mining EDV.L were top performers on the blue-chip index, gaining 7.4% and 6.4%, respectively, on rising bullion prices. GOL/

Industrial metal miners .FTNMX551020 gained 2.7% as London base metals were mostly higher, with copper headed for a weekly rise.

The energy index .FTNMX601010, however, fell 1.2%, leading sectoral declines, dragged by heavyweight BP BP.L. The energy group fell 2.9% after it said it expects weak first-quarter gas marketing and trading earnings, and an increase in net debt.

British 20- and 30-year government bond yields were on course for their biggest weekly jump since the aftermath of Liz Truss's "mini-budget" in 2022 as the U.S.-China trade war escalated, igniting long-term inflation worries.


(Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Vijay Kishore and Jane Merriman)

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

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