(Reuters) – Britain’s FTSE 100 edged higher on Tuesday, outperforming global peers, after a Bank of England policymaker’s remarks on U.S. tariffs boosted investor sentiment.
As of 1020 GMT, the blue-chip FTSE 100 index was up 0.3%, while the midcap index was little changed.
BoE policymaker Megan Greene said on Tuesday that Britain is more likely to experience lower inflation due to U.S. President Trump’s tariffs as the UK’s decision of not levying reciprocal tariffs could make it a destination for cheaper goods from Asia and Europe.
Her remarks come at a pivotal moment as policymakers globally are weighing inflation concerns against economic growth prospects.
The BoE’s next monetary policy meeting is on May 8. Financial markets on Tuesday priced in a 100% chance of a rate cut.
Meanwhile, some European bourses dipped on Tuesday after Trump’s criticism of the Federal Reserve chair triggered a selloff in U.S. assets.
The pan-European STOXX 600 index fell 0.3%
Back home, consumer staples rose 1.2%, leading gains on the FTSE 100. J Sainsbury topped the blue-chip index, jumping 2.8% after J.P. Morgan raised its target price on the stock.
Tesco, Britain’s biggest supermarket group, gained 2.3%.
An index of UK’s precious metal miners rose 2.4%, hitting a three-year high after gold prices briefly surpassed $3,500 per ounce to hit an all-time high.
The homebuilders index climbed for the fifth straight session, up 1.6%.
On the flip side, DCC bottomed the blue-chip index after the sales and marketing services provider said it will sell its healthcare division to private equity firm Investindustrial Advisors. Its shares were down 3.6%.
On Wednesday, investors will closely monitor comments from BoE Governor Andrew Bailey and Deputy Governor Sarah Breeden, who are speaking at separate events in Washington, as well as an earlier speech by Chief Economist Huw Pill in Leeds.
Last week, British Prime Minister Keir Starmer spoke with U.S. President Donald Trump, discussing trade between the two nations, among other subjects.
Britain hopes to negotiate a deal with Trump following his imposition of 10% tariffs on most British imports to the United States, with higher 25% rates on cars, steel, and aluminium. (This story has been corrected to change the day to Wednesday and to fix the event description in paragraph 13)
(Reporting by Ragini Mathur in Bengaluru; Editing by Sonia Cheema)
