FTSE Up Slightly As Stocks Turn In Mixed Performance

(RTTNews) - U.K. stocks are turning in a mixed performance in cautious trade on Monday, amid concerns about the Trump administration's tariff stance.

The Sino-U.S. trade tensions, with the two nations accusing each other of violating trade agreement, and U.S. President Donald Trump's remarks that the tariffs on steel and aluminum will be doubled to 50%, are weighing sentiment.

The benchmark FTSE 100, recovering from a low of 8,733.25, was up 3.87 points or 0.04% at 8,776.25 a few minutes before noon.

WPP is down nearly 4%. Ashtead Group is down 2.5%, while Melrose Industries is lower by nearly 2%. Diploma, Croda International Group, Spirax Group, Diageo, DCC, Intermediate Capital Group, Segro, Weir Group and AstraZeneca are down 1 to 1.7%.

Shares of support provider for army and nuclear operations Babcock International Group are up more than 7% following the UK Government pleding fresh military spending to bolster the country's 'war readiness'.

IAG is gaining nearly 2% after the British Airways opener launched the second tranche of its share buyback programme, amounting to 500 million euros. The second tranche will commence on June 2 and is expected to end no later than November 28.

IAG said that the launch follows the successful completion of the first tranche of 500 million euros on May 29. The entire buyback programme, which was initially announced on February 28, adds up to 1 billion euros.

Oil stocks BP and Shell are notably higher as crude oil prices moved up sharply amid reports of likely sanctions against Russia by the U.S.

Fresnillo is gaining 3.7% and Endeavour Mining is gaining 2.3%. BAE Systems, Hiscox and Unite Group are up 1 to 2%.

In economic news, data from Nationwide Building Society showed UK house prices grew 0.5% on a monthly basis, in contrast to the 0.6% fall in April. Prices were expected to remain flat.

Year-on-year, house price growth edged up to 3.5% from 3.4% in April.

Nationwide's Chief Economist Robert Gardner said there was a notable increase in housing property transactions in March as buyers brought forward their purchases to avoid stamp duty costs.

Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive, Gardner said.