Britain's Market Jitters: Indices Dip Despite Tariff Hopes

The UK's benchmark FTSE 100 index dropped on Thursday, yet remained on track for a weekly gain, buoyed by potential tariff exemptions from the U.S. The automobile sector led losses while the mining index gained. Investors await the European Central Bank's decision amidst ongoing economic uncertainties.

The FTSE 100, Britain's key stock market index, experienced a decline on Thursday, dropping by 0.7%. Despite this, the index remained poised for a strong weekly gain, fueled by U.S. President Donald Trump's potential tariff exemptions. The mid-cap FTSE 250 also saw a drop, losing 0.4% during the session.

Thursday's losses were largely influenced by the automobiles and parts index, which fell by 3.2%. Defence giants Rolls-Royce and BAE Systems experienced declines, pulling down the benchmark index. Meanwhile, the precious metals and mining index experienced a slight 1% drop after achieving eight consecutive sessions of gains.

As investors prepared for a long holiday weekend, attention turned to the European Central Bank, set to announce an interest rate decision. Among notable stock movements, Sainsbury's posted gains after predicting stable profits amid competitive pressures, while Deliveroo rose 3.7% following a significant increase in orders in early 2024.

(With inputs from agencies.)