FTSE Down Marginally In Cautious Trade

(RTTNews) - UK stocks are slightly weak on Thursday as renewed concerns about U.S. government's trade policy and uncertainty about U.S. tariffs on China weigh on sentiment.

U.S. has signaled it willingness to reduce tariffs on China, but only through mutual agreement. China has denied any ongoing talks with Washington.

A day after Trump signaled a possible shift in his trade war with China, White House Press Secretary Karoline Leavitt said in an interview with Fox News that there will be no unilateral reduction in tariffs on goods imported from China.

Treasury Secretary Scott Bessent also clarified that such a move would not come unilaterally and there was no timeframe for engagement, casting doubt on a timely resolution to the trade war.

He also noted that there are multiple factors with regard to China beyond just tariffs and that a full rebalancing of trade might take two to three years.

Investors are also digesting a slew of corporate earnings updates.

The benchmark FTSE 100, which dropped to 8,371.59 earlier in the session, is down 8.10 points or 0.1% at 8,395.08 a few minutes before noon.

Endeavour Mining is up 2.7%, while Land Securities, Unite Group, Fresnillo, Croda International, Weir Group, LondonMetric Property, Auto Trader Group, BP, Imperial Brands, Persimmon and Associated British Foods are gaining 1.3 to 2.5%.

Legal & General Group shares are down more than 5%.

Spirax Group is declining 3%. HSBC Holdings, Entain, Bunzl, Hiscox, Marks & Spencer, Compass Group, Rolls-Royce Holdings, Lloyds Banking Group, Rentokil Initial, Barclays and Scottish Mortgage are down 1 to 2.2%.

A report from the Confederation of British Industry showed business confidence in the United Kingdom increased to -33 points in the second quarter of 2025 from -47 points in the first quarter of 2025.

The Confederation of British Industry's monthly net balance of new orders came in at -26 in April 2025, the highest in five months, compared to -29 in March and forecasts of -35. Meanwhile, the export orders index plunged to -41 from -29.