UK Shares Decline Amid New Tariffs and Falling Oil Prices; Defense Stocks Rise

UK shares experienced a downturn on Tuesday, March 4, mirroring a global equities decline triggered by new U.S. tariffs and falling oil prices. The FTSE 100 decreased by 0.3%, while the midcap FTSE 250 fell by 0.8%. New tariffs imposed by the U.S. on imports from Mexico and Canada, along with increased duties on Chinese goods, fueled concerns about potential reciprocal tariffs. This development negatively impacted global equities and increased the appeal of safe-haven assets. The oil and gas sector saw the most significant decline, dropping 3% following OPEC+'s decision to increase oil output in April. Shell's shares decreased by 2.6% after announcing an executive team overhaul. Conversely, defense stocks rose by 2%, marking their seventh consecutive session of gains. This increase followed British finance minister Rachel Reeves' announcement of plans to expedite defense equipment procurement and the European Commission's proposal for a joint borrowing plan to boost defense spending.