UK Financial Markets Surge Amid Tariff Exemption and Labour Market Insights

UK's main indexes rose as financial shares led the gains following Trump's hint at auto levies exemptions. Investors cheered the news, boosting shares after a market selloff. The strong performance was supported by luxury carmakers, investment banking, and precious metal miners.

UK's financial markets took a significant leap on Tuesday, driven by financial shares after President Donald Trump hinted at possible exemptions on auto-related levies. This comes as investors evaluate job market data to gain insight into monetary policy amidst global economic uncertainties.

The positive sentiment was fueled by Trump's consideration to adjust a 25% tariff on auto imports from regions including Mexico and Canada. This follows a recent exemption of smartphones and other electronics from tariffs, which investors have embraced, pushing shares up for a second session running.

The automotive sector saw impressive gains, with Aston Martin and Dowlais Group rising by 4% and 2%, respectively. Additionally, investment banking shares led the charge with 3I Group climbing 4%, bolstered by Citigroup's raised stock target. Precious metal miners saw gains as gold prices went up, reflecting a safe-haven investment amid ongoing tariff concerns.

(With inputs from agencies.)