Source: Sharecast
The FTSE 100 was up 0.6% at 8,751.68.
Kathleen Brooks, research director at XTB, said: "As we start a new week, there are another round of tariffs for markets to price in. Trump has announced plans to slap 25% tariffs on imports of steel and aluminium from Monday, at the same time as China will place tariffs on $14bn of US goods, in retaliation for the US’s 10% flat tariff on all Chinese imports.
"While $14bn in trade terms is fairly small, the symbolism will have more impact on market sentiment. It highlights the fact that China and the US could not agree on a plan to move forward without tariffs, and essentially starts a new trade war between the two largest global economies.
"Hopes that the US could roll back on tariffs like it did with Mexico and Canada were dashed, and the new measures from China will also include export restrictions for rare earth minerals, which are vital to produce smart phones, some chips, batteries and infrastructure for renewable technology, which could weigh on tech stocks at the start of this week."
Looking ahead to the rest of the week, fourth-quarter UK GDP data will be released on Thursday. It’s expected to show a slight quarter-on-quarter contraction.
Richard Hunter, head of markets at Interactive Investor, said: "In addition, the UK banks will also come into the full-year reporting spotlight, as Barclays and NatWest kick off the season towards the end of the week. Expectations are high for both, and the recent strength of the US banks provided a positive read across, although some subsequent signs of weakness in deal-making activity over January could limit gains for Barclays in particular.
"Another potential headwind could quite simply be that investors have priced in a robust set of numbers, with the Barclays share price already having risen by 14% in the year to date (and by 113% over the last year as a whole) and with NatWest having seen similar gains of 10% and 114% respectively."
In equity markets, BP surged to the top of the FTSE 100 following a Bloomberg report over the weekend that activist investor Elliott Investment Management has built a "significant" stake in the oil giant.
Neil Wilson, analyst at TipRanks, said: "The firm is sure to face pressure to make substantial changes, from an overhaul of its green bets to a shake-up of the board. Probably also expect a big shift to focus on upstream capital projects to improve cash flow. So, the shift will be to move away from spending on green stuff that doesn’t really pay to investing in cash generative oil and gas production. Simples, really.
"Specifically in terms of personnel, it is thought that the activist will push for removal of chairman, Helge Lund, who helped oversee the company’s controversial net zero strategy with previous CEO Bernard Looney."
Elsewhere, Kosmos Energy gained as it said that the first liquified natural gas production has been achieved at the BP-operated Greater Tortue Ahmeyim project, offshore Mauritania & Senegal.
Chemicals group Johnson Matthey was in the black as it announced that its chair of seven years Patrick Thomas will step down later this year, while its chief financial officer of four years will be replaced by the head of finance at DS Smith.
In broker note action, Spectris rose after an upgrade to ‘overweight’ at JPMorgan but BA and Iberia owner IAG flew lower after a downgrade to ‘neutral’ at Goldman Sachs.
Market Movers
FTSE 100 (UKX) 8,751.68 0.59%
FTSE 250 (MCX) 20,929.75 0.59%
techMARK (TASX) 4,732.48 0.37%
FTSE 100 - Risers
BP (BP.) 462.45p 6.74%
Antofagasta (ANTO) 1,859.50p 2.93%
Airtel Africa (AAF) 148.00p 2.49%
Fresnillo (FRES) 780.00p 1.96%
Centrica (CNA) 139.10p 1.90%
Prudential (PRU) 674.80p 1.66%
Vodafone Group (VOD) 70.02p 1.57%
Intermediate Capital Group (ICG) 2,348.00p 1.29%
Berkeley Group Holdings (The) (BKG) 3,764.00p 1.29%
St James's Place (STJ) 1,112.00p 1.28%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 358.30p -2.18%
BAE Systems (BA.) 1,175.00p -1.84%
SSE (SSE) 1,538.00p -1.41%
CRH (CDI) (CRH) 8,302.00p -0.69%
easyJet (EZJ) 526.80p -0.60%
DCC (CDI) (DCC) 5,275.00p -0.57%
Compass Group (CPG) 2,746.00p -0.47%
London Stock Exchange Group (LSEG) 11,675.00p -0.43%
Standard Chartered (STAN) 1,105.50p -0.41%
Melrose Industries (MRO) 621.40p -0.38%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 113.00p 4.82%
ITV (ITV) 76.80p 3.71%
Drax Group (DRX) 658.50p 3.70%
Harbour Energy (HBR) 238.00p 3.30%
Ithaca Energy (ITH) 132.10p 3.04%
Foresight Group Holdings Limited NPV (FSG) 380.00p 2.43%
Energean (ENOG) 993.00p 2.27%
Vistry Group (VTY) 592.50p 2.24%
Ferrexpo (FXPO) 97.30p 2.21%
Morgan Advanced Materials (MGAM) 267.00p 2.10%
FTSE 250 - Fallers
Indivior (INDV) 755.50p -2.26%
Pagegroup (PAGE) 320.60p -1.66%
Hays (HAS) 74.80p -1.58%
Baillie Gifford Japan Trust (BGFD) 769.00p -0.90%
Dr. Martens (DOCS) 72.20p -0.76%
Hill and Smith (HILS) 1,924.00p -0.72%
Babcock International Group (BAB) 590.50p -0.67%
CMC Markets (CMCX) 222.50p -0.67%
Safestore Holdings (SAFE) 597.50p -0.67%
Lancashire Holdings Limited (LRE) 638.00p -0.62%