UK stocks retreated on Wednesday as traders grew weary of mixed signals from U.S. President Donald Trump about the progress of trade talks with China, while Tullow Oil slid after slashing production targets.
Renewed hopes of a U.S.-China trade resolution and a more than 3% rise in shares of telecom giant Vodafone helped London stocks bounce back on Tuesday after falls that tracked a downbeat global mood a day earlier.
A mix of rising tensions in Hong Kong, dampened U.S.-China trade sentiment and a firmer pound hit the exporter-heavy FTSE 100 on Monday, while domestic stocks rallied after the Brexit Party lent some clarity ahead of the Dec. 12 election.
Falls for mining stocks and a 4% drop in Asia-exposed luxury brand Burberry led London's FTSE 100 lower on Friday, as doubts about a U.S.-China trade deal halted a five-day winning streak for European markets.
Shares in most domestically-focused British companies rallied on Thursday after two Bank of England policymakers unexpectedly voted for an interest rate cut, fuelling hopes of a fresh boost to the economy, while upbeat earnings updates also lent support.
London's FTSE 100 edged up on Wednesday, adding to a 2% gain over the past three sessions, as investors waited for news on U.S.-China trade talks before making further bets, while mall operator Intu dropped on signs it may seek to sell more shares.
Gains for oil majors and miners pushed London's FTSE 100 into the black on Tuesday, buoyed by hopes of a trade deal between the United States and China, while Primark owner Associated British Foods jumped 6% after strong results.
London's FTSE 100 surged nearly 1% to a more than one-month high on Monday as heavyweight banks, miners and oil stocks were driven higher by hopes of a trade deal between the United States and China.
* TP ICAP jumps on upbeat earnings report
(Adds news items, analyst comment, closing prices)
The FTSE 100 blue-chip stock index dropped more than 1% on Thursday, under pressure from results-driven falls in Shell and Lloyds and the latest tensions over the U.S.-China trade situation.