The FTSE 100 was firmly higher on Friday, sidestepping Donald Trump’s latest volley of trade tariffs aimed at pharmaceuticals and furniture.
London’s leading index was 0.4% higher at the time of writing.
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The FTSE 100’s reaction to the latest tariffs will come as a relief for investors, who may have feared material impacts on London-listed GSK and AstraZeneca, which make up a significant portion of the index.
“In a Truth Social post, the US President announced a 100% import tax on branded or patented medicines, effective October 1st,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“But there’s a big but. Firms that build drug manufacturing plants in the US are to be exempted, meaning that companies such as GSK and AstraZeneca who have laid out ambitious US investment plans are well placed to escape this heavy-handed measure.”
GSK and AstraZeneca shares were little changed at the time of writing.
The FTSE 100 has remained in a relatively tight range for around a month as investors await a catalyst for the index to break out. There was little sign that the catalyst would appear on Friday.
Few stocks changed by more than 2% and most moved by less than 1%.
InterContinental Hotels was the top riser, adding 2.4%, as brokers shifted to a positive stance on the hotels group.
“On the FTSE 100, InterContinental Hotels took the top risers’ spot after getting the much-sought-after double upgrade,” said Russ Mould, investment director at AJ Bell.
“JPMorgan has gone from ‘underweight’ to ‘overweight’ on the stock. Brokers typically move one notch up or down the ladder with upgrades or downgrades among the buy, hold and sell ratings or their equivalents. It is rare brokers do a complete about-turn and go from hating to loving a stock in a single swoop. Therefore, when it happens, investors sit up and take notice and that can drive a buying spree in a stock.”
Rio Tinto was the top faller, driven by minor profit-taking after a strong run.