- FTSE 100 up 0.9%, FTSE 250 rises 1.2%
- Defence stocks up as Trump threatens more sanctions on Russia
- Elementis jump after sale of its talc business
- Burberry, Jupiter Fund gain after brokerage upgrades
May 27 (Reuters) - London stocks climbed on Tuesday in broad-based gains, in their first reaction to U.S. President Donald Trump's decision to postpone steep tariffs on the European Union.
By 1009 GMT, the blue-chip FTSE 100 was up 0.9% to its highest level since May 5. The mid-cap FTSE 250 gained 1.2%. The market was closed on Monday for a bank holiday.
The market dropped on Friday when Trump said he was recommending a 50% tariff on goods from the European Union, effective June 1. He backed away from the threat on Sunday and restored a July 9 deadline for trade negotiations.
On the day, aerospace and defense stocks led the gains after Trump threatened additional sanctions on Russia. Melrose Industries and BAE Systems both rose more than 3%, ranking among the FTSE 100's top performers.
Specialty chemicals firm Elementis advanced 11.2% after agreeing to sell its talc business to IMI Fabi in a deal worth $121 million in enterprise value.
Jupiter Fund Management jumped 9.5% after Peel Hunt upgraded the money manager's stock to 'add' from 'hold'.
Luxury brand Burberry gained 3% after Barclays upgraded the stock to 'equal-weight' from 'underweight'.
Precious metal miners were the only group to decline, falling 3.7% in tandem with gold prices.
Investors are now focused on chip-giant Nvidia's results due Wednesday, alongside speeches from Federal Reserve policymakers and Friday's U.S. core PCE data, which could provide insights into the path of U.S. interest rates.
Reporting by Twesha Dikshit and Ragini Mathur; Editing by Savio D'Souza
Source: Reuters