FTSE 100 Down 0.5% On Tariff Concerns, Weak GDP Data

(RTTNews) - U.K. stocks are down in negative territory on Friday, weighed down by disappointing GDP data, and renewed trade tensions.

Data from the Office for National Statistics said U.K.'s GDP fell 0.1% in May, following a 0.3% drop in April, due a sharp fall in industrial output.

On the trade front, U.S. President Donald Trump announced a 35% tariff on Canadian imports, starting Aug. 1, in a dramatic escalation of a trade war with the United States' closest ally over the country's alleged role in fentanyl flows.

He also talked about blanket tariffs of 15% to 20% on most of America's trading partners and announced plans to make a 'major statement' on Russia, denting investors' appetite for riskier assets.

Investors also await a word on tariffs for the European Union.

The benchmark FTSE 100 was down 46.90 points or 0.52% at 8,928.76 about a quarter past noon.

Among the major losers, WPP is down 3.4%. Ashtead Group, JD Sports Fashion, Smith & Nephew, Spirax Group, Weir Group, Natwest Group, Whitbread, GSK and Diageo are down 1.7 to 2.6%.

Croda International, Persimmon, Barclays, Bunzl, Kingfisher, Mondi, Melrose Industries, HSBC Holdings and Standard Chartered are also notably lower.

Fresnillo is gaining about 2.5%. BP is up 2.3% after the oil and gas giant said it expects higher oil output and strong trading performance in the second quarter.

Endeavour Mining, British American Tobacco, Aviva, Admiral Group, Engain, Hiscox, United Utilities and Phoenix Group Holdings are also up in positive territory.

In the three months to May, U.K.'s real GDP grew 0.5% compared with the previous three months. GDP expanded 0.7% in May from the previous year.

Another data from the ONS showed that the visible trade deficit narrowed to GBP 21.7 billion in May from GBP 22.4 billion in the previous month. At the same time, the surplus on services trade increased to GBP 15.99 billion from GBP 15.9 billion a month ago.

As a result, the total trade balance showed a deficit of GBP 5.7 billion, which was below April's GBP 6.5 billion deficit.