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UK shares fall amid tariff uncertainty

UK shares fall amid tariff uncertainty

The benchmark index of British stocks fell on Monday. However, gains in mining stocks held losses in check as investors awaited the details of reciprocal U.S. levies.

The blue-chip FTSE 100 index closed down by 0.1% while the midcap FTSE 250 ended flat.

Pharmaceuticals and biotech sectors lost 1.5%. AstraZeneca, the blue-chip index's heavyweight, was down by 1.3%.

The industrial metals miners, on the other hand, rose 1.6% due to higher copper prices. Traders bought the metal to send to the United States where President Donald Trump has threatened to impose tariffs against imports.

JPMorgan has also upgraded the European mining industry to "overweight" (from "underweight") from its previous "underweight" status.

Anglo American Glencore Antofagasta Rio Tinto and Antofagasta all saw their shares rise between 1.2% to 2.7%.

Investors awaited information on possible exclusions of sector-specific tariffs when Trump imposed reciprocal levies April 2. However, a Trump official warned that no final decision had been made.

Vodafone shares dropped 4.4% after BofA Global Research lowered its rating from 'buy to 'neutral,' as well as lowering its price target on the stock.

This week, key economic data will be released including UK inflation numbers, a budget update for the half-year and the preferred inflation reading of the U.S. Federal Reserve.

A survey of businesses in Britain's service sector showed a positive trend this month. This was a comfort for Finance Minister Rachel Reeves, who is preparing to deliver a speech this week on the economy and public finances.

The preliminary reading for the UK S&P Services Purchasing Managers Index on Monday reached a seven-months high of 53.2, up from 51.

After a sheep was found to have bird flu in England, the stock of meat producer Cranswick dropped 2.4%. (Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru. Anil D'Silva, Mark Potter and Anil D’Silva edited the report.

(source: Reuters)