UK Markets Juggle Rate Cuts and US Trade Deals

The pound saw a slight uptick as UK and US leaders announced a trade deal covering multiple sectors, despite existing tariffs. The Bank of England's interest rate cut provided some support, and the FTSE 100 experienced contrasting movements as UK stocks reacted to the economic landscape.

The British pound gained slight momentum on Thursday following the announcement of a key trade deal between U.S. President Donald Trump and UK Prime Minister Keir Starmer. However, British stocks faced challenges, struggling to stabilize amidst the economic changes.

The Bank of England provided a boost to the market, implementing an expected rate cut to 4.25%. Despite this measure, a divide among policymakers reflected persistent uncertainties driven by U.S. tariffs.

Specific trade agreements focused on aluminium, steel, automotive exports, and pharmaceuticals. Although the pound initially rose, it retracted upon detailed disclosures. UK equities remain in the spotlight, with global-facing stocks hitting afternoon lows and mid-cap domestic indexes showing slight gains.

(With inputs from agencies.)