Source: Sharecast
At 0845 GMT, the FTSE 100 was up 0.2% at 8,786.24.
Kathleen Brooks, research director at XTB, said: "President Trump’s tariff policy remains unclear, and thus, difficult to price in by financial markets. Trump said on Monday that tariffs on metals could go higher, and other tariffs could be announced later this week.
"At this stage, traders have little clarity about how far Trump’s tariff policies will go, whether they are mostly a negotiating tactic or if they will have a more long-lasting economic impact. It is also unclear if it will spark a wave of protectionism."
On home shores, data out earlier showed that UK shoppers braced stormy weather in January to take advantage of promotional deals, with sales rising strongly compared with the year before.
According to the British Retail Consortium-KPMG retail sales monitor, total retail sales increased at an annual rate of 2.6% last month, down from the 3.2% year-on-year growth seen in December but well ahead of the 1.2% gain recorded in January 2024.
Results were boosted by an earlier start of the reporting period, the BRC said, which added a few more post-Christmas shopping days into the mix.
Following a 3.3% annual slump in sales in November, the three-month average growth rate stood at just 1.1%, while the 12-month average growth rate was 0.8%.
Food sales rose 2.8% year-on-year, while non-food sales were up 2.6%. Meanwhile, in-store non-food sales were 2.6% higher while online non-food gained 2.2%.
"January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, albeit on a weak comparable," said the BRC's chief executive, Helen Dickinson.
"Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories. With growth across nearly all categories, only toys and baby equipment remained in decline. While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month."
However, Dickinson painted an uncertain picture looking ahead, with inflationary pressures and £7bn of new costs for retailers - comprising higher national insurance contributions, a higher National Living Wage, and a new packaging levy - likely to lead to price increases and lower investment.
"Government can mitigate this by ensuring its proposed business rates reforms do not result in any shop paying more in business rates," she said.
In equity markets, sports betting and gaming group Entain tumbled as it said chief executive Gavin Isaacs has left the company with immediate effect after just five months.
Entain, which runs brands like Coral, Ladbrokes and Foxy Bingo as well part-owning the BetMGM brand in the US, did not disclose a reason for the abrupt departure, but said that the decision was "by mutual agreement".
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Details are scarce, and while Entain used the moment to reassure investors that it's on track to meet 2025 profit expectations, sudden leadership shake-ups rarely go down smoothly - questions will be flying."
Bellway also slumped as the housebuilder reported strong growth for the first half and reiterated its full-year guidance, but highlighted the "sensitivity of customer demand" amid a rise in mortgage rates over recent months.
FTSE 100 peers Persimmon, Barratt Redrow, Taylor Wimpey and Berkeley all fell.
Homeware retailer Dunelm was in the red as it announced the retirement of its chief executive Nick Wilkinson and posted an uptick in interim revenue but broadly flat profits.
Oil giant BP nudged lower as it said fourth-quarter underlying replacement cost profit declined to $1.17bn from $2.99bn in the same period a year earlier.
Market Movers
FTSE 100 (UKX) 8,786.24 0.21%
FTSE 250 (MCX) 20,965.31 -0.10%
techMARK (TASX) 4,760.70 0.15%
FTSE 100 - Risers
Intertek Group (ITRK) 5,210.00p 2.55%
BAE Systems (BA.) 1,190.50p 1.10%
Diploma (DPLM) 4,546.00p 1.07%
Experian (EXPN) 3,989.00p 1.04%
NATWEST GROUP (NWG) 445.60p 0.97%
HSBC Holdings (HSBA) 872.00p 0.92%
Relx plc (REL) 4,109.00p 0.81%
Compass Group (CPG) 2,773.00p 0.80%
Haleon (HLN) 390.10p 0.75%
CRH (CDI) (CRH) 8,276.00p 0.71%
FTSE 100 - Fallers
Entain (ENT) 669.80p -9.78%
Persimmon (PSN) 1,235.00p -2.34%
Barratt Redrow (BTRW) 438.80p -2.08%
Taylor Wimpey (TW.) 117.70p -1.63%
Glencore (GLEN) 353.30p -1.56%
Anglo American (AAL) 2,457.00p -1.54%
Berkeley Group Holdings (The) (BKG) 3,740.00p -1.37%
Fresnillo (FRES) 792.50p -1.31%
International Consolidated Airlines Group SA (CDI) (IAG) 347.70p -1.25%
Mondi (MNDI) 1,238.50p -1.04%
FTSE 250 - Risers
W.A.G Payment Solutions (WPS) 69.00p 2.99%
Morgan Sindall Group (MGNS) 3,815.00p 2.83%
Bloomsbury Publishing (BMY) 664.00p 2.79%
Tate & Lyle (TATE) 648.50p 2.00%
C&C Group (CDI) (CCR) 152.00p 1.88%
Mitie Group (MTO) 119.00p 1.71%
Petershill Partners (PHLL) 273.00p 1.49%
Babcock International Group (BAB) 604.50p 1.43%
Target Healthcare Reit Ltd (THRL) 88.60p 1.37%
Watches of Switzerland Group (WOSG) 567.50p 1.07%
FTSE 250 - Fallers
Bellway (BWY) 2,422.00p -6.47%
Ferrexpo (FXPO) 89.00p -3.65%
Dunelm Group (DNLM) 950.00p -2.42%
Jupiter Fund Management (JUP) 77.20p -2.03%
Workspace Group (WKP) 464.50p -1.90%
Vistry Group (VTY) 595.50p -1.90%
Victrex plc (VCT) 956.00p -1.75%
Wizz Air Holdings (WIZZ) 1,520.00p -1.67%
Mobico Group (MCG) 70.70p -1.53%
Supermarket Income Reit (SUPR) 68.80p -1.43%
