UK Stocks Mixed Amid Escalating Trade Tensions, UK House Price Growth Accelerates

The UK's FTSE 100 index opened up 4.94 points, or 0.1%, at 8,777.32, while the FTSE 250 was down 10.42 points, or 0.1%, at 21,017.59. Hiscox gained 1.4% after announcing a tender offer for outstanding notes worth £275 million. GSK rose 0.5% after the FDA accepted its new drug application for liver disease treatment. Meanwhile, trade tensions between the US and China escalated, with the US imposing 50% tariffs on steel and aluminum imports.

The FTSE 100 index opened up 4.94 points, or 0.1%, at 8,777.32 on Friday, June 2, 2025, while the FTSE 250 was down 10.42 points, or 0.1%, at 21,017.59. Hiscox gained 1.4% after announcing a tender offer for outstanding notes worth £275 million, while GSK rose 0.5% following the FDA's acceptance of its new drug application for liver disease treatment. Meanwhile, trade tensions between the US and China escalated, with the US imposing 50% tariffs on steel and aluminum imports [1].

The FTSE 100's performance was bolstered by the Bank of England's renewed calls for further interest rate cuts. Alan Taylor, a member of the Monetary Policy Committee, expressed concern over the economic outlook and advocated for additional rate reductions [1]. This stance was echoed by M&G, which rose after entering a long-term strategic partnership with Japanese life insurer Dai-ichi Life. The partnership is expected to generate at least $6 billion in new business flows for M&G over the next five years [1].

In contrast, hVIVO shed 58% after the cancellation of a significant human challenge trial contract and the postponement of a small study. The firm's revenue contracted for financial 2025 remains at £47 million, but the current contracted revenue is expected to result in a mid-single-digit operating loss for the year [1].

In the US, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ended higher on Thursday, with the Dow Jones up 0.3%, the S&P 500 up 0.4%, and the Nasq up 0.4% [1]. The yield on the US 10-year Treasury narrowed to 4.41%, and the yield on the US 30-year Treasury narrowed to 4.91% [1].

In Asia, the Nikkei 225 index in Tokyo shed 1.2%, the Shanghai Composite lost 0.5%, and the Hang Seng index in Hong Kong faded 1.5% [1]. Oil prices rebounded more than $1 a barrel after producer group OPEC+ decided to increase output in July by the same amount as in the prior two months [2]. Gold prices climbed amid an escalation in the Russian war in Ukraine and US President Donald Trump's fresh threat to double tariffs on imported steel and aluminum [2].

References:
[1] https://www.sharesmagazine.co.uk/news/shares/ftse-100-outperforms-peers-on-calls-for-further-rate-cuts
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3S509G:0-uk-stocks-factors-to-watch-on-june-2/