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UK shares dropped on Monday as U.S. President Donald Trump signaled that his reciprocal tariffs would target all countries, escalating tensions in the global trade war. The blue-chip FTSE 100 index declined by 0.75%. Speaking with reporters late Sunday, Trump indicated that the tariffs would have a broad impact on all nations. He is anticipated to announce the reciprocal tariffs on Wednesday, followed by potential auto tariffs on Thursday, though specific details remain unclear. British Prime Minister Keir Starmer and Trump held a phone conversation on Sunday, discussing what Downing Street described as "productive negotiations" toward a UK-U.S. economic prosperity agreement. While Trump suggested on Friday that some nations might be exempted from the tariffs, weekend reports pointed to a shift toward stricter measures. Adding to the market concerns, data released on Monday by the Bank of England revealed a decline in British mortgage approvals for February. Additionally, consumer credit growth slowed compared to the previous month, signaling further economic uncertainty..

Single Stock Stories & Broker Updates:

• Shares of Pets at Home Group Plc fell 16.2%, making it the biggest loser on the FTSE 250 index. The company anticipates a decline in fiscal 2026 underlying pretax profit due to rising costs and lower demand for pet accessories. It expects retail profits to also fall year-on-year in 2026. Jefferies noted that slower retail growth and external cost pressures could heavily burden the business moving into FY26. The stock hit its lowest level since January 13 and is currently down 9.7%, reducing YTD gains to about 4%.
• UK's metals and miners index drops 4% to its lowest since February 2021 due to concerns over new U.S. tariffs. Anglo American and Glencore fall 4.2% and 4.4%; Rio Tinto loses 3.8% and Antofagasta declines 3%. Ferrexpo is down 3.6%.
• Barclays upgrades Bunzl to "overweight" from "equal weight," raising PT to 3,650p from 3,500p, citing a robust FY25 outlook against U.S. macro risks. Barclays notes Bunzl is well positioned to benefit from potential COGS inflation and supply-chain disruptions due to tariffs. Shares are slightly lower premarket. Bunzl plans to allocate 700 million pounds annually for three years for acquisitions and capital returns. Analysts have a "buy" rating with a median PT of 3,500p. The stock has fallen ~9.8% YTD.
• British oilfield services firm WoodGroup's shares plummet 38.7% to 24.5p, making it the top percentage loser in London. The company reports "material weaknesses and failures" in its financial culture after a Deloitte review, including management pressure and withheld information from auditors. Significant structural changes have been implemented, including new finance roles. Shares are down approximately 35.5% YTD.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8950

• Primary support 8700
• Below 8700 opens 8600
• Primary objective 9050
• Daily VWAP Bearish
• Weekly VWAP Bearish

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