British shares sold off on Wednesday as the United States threatened to slap 10 percent tariffs on a list of $200 billion worth of Chinese imports, escalating a trade war and sending jitters across global markets.
The UK’s top share index rose on Friday, shrugging off any worries over global trade after U.S. tariffs on Chinese goods took effect.
Signs of an easing in the trade dispute between the United States and the European Union helped push Britain’s top share index up on Thursday with gains in basic materials and energy stocks, while shares in AB Foods fell after a trading update.
AB Foods reported a 1% fall in first-half profit, with a resilient performance at its Primark fashion business offset by a previously flagged reduction in sugar revenues.
Britain’s top share index rallied, shaking off last week’s slight decline as firmer commodities stocks and a rise in Associated British Foods propped up the FTSE.
Primark owner AB Foods maintained full-year earnings guidance, but cautioned revenue and profit at its sugar business would fall by more than previously expected.
Attention focussed on earnings, with a 5 percent rise in AB Foods leading a steady FTSE 100 .FTSE index.