FX.co ★ FTSE 100 Starts Week Lower

The FTSE 100 index experienced a decline on Monday, following two days of upward movement, coinciding with the implementation of a new trade agreement between the UK and the US. This agreement reduces tariffs on British car exports from 27.5% to 10% and entirely removes duties on aerospace goods, including engines and aircraft parts. Nonetheless, a base 10% tariff on cars remains in place, and discussions on waiving tariffs for core steel products continue. In other economic news, the UK’s GDP growth for the first quarter was confirmed at 0.7%. Despite this, mortgage rates have shown a downward trend throughout the year, and recent data indicates a greater-than-expected increase in mortgage approvals. Examining individual stocks, AstraZeneca saw a decline of approximately 1%, while key players in the oil sector, Shell and BP, fell by 0.8% and 1%, respectively. Homebuilding companies such as Persimmon, Barratt, Redrow, and Taylor Wimpey performed poorly, with declines ranging from 3% to 4%. Centrica faced a 1.5% drop following a downgrade by JPMorgan. Conversely, Rolls-Royce recorded a rise of over 1.5%, BAE Systems gained nearly 1.3%, and gold mining companies Fresnillo and Endeavour experienced increases exceeding 0.4%.