- FTSE 100 down 0.8%, FTSE 250 fell 0.7%
- UK healthcare sector hits near two-month low ahead of tariffs
April 2 (Reuters) - UK shares retreated on Wednesday as global markets braced for details of U.S. President Donald Trump's reciprocal tariffs that has fueled concerns about an escalating trade conflict that could hamper economic growth.
The blue-chip FTSE 100 fell 0.8% as of 1035 GMT; the midcap FTSE 250 index dropped 0.7%. Both indexes shed most of the gains made in the previous session.
Trump is set to announce sweeping reciprocal tariffs on global trading partners at 2000 GMT in what the White House has dubbed "Liberation Day", threatening to disrupt decades of established trade practices.
Most of the sectors were trading in red, with the Aerospace and Defence sector leading the decline, falling 2.5%.
Heavyweight healthcare firms fell alongside their European peers ahead of the tariffs announcement. AstraZeneca dropped 2.2%, GSK fell 3%, Convatec Group declined 2.7% and Hikma Pharmaceuticals lost 1.9%.
An index of UK's healthcare companies hit near a two-month low in the day, falling 2.2%.
On the data front, pay awards granted by British employers cooled during the three months to February, according to a survey that chimed with an official gauge of slowing wage growth that should keep the Bank of England on track to reduce borrowing costs later this year.
In single stocks, Topp Tiles dropped 5.8% after the tile retailer said it expects its annual cost base to rise by about 4 million pounds ($5.2 million) from April due to national living wage and insurance expenses.
Raspberry Pi jumped 7%, topping the midcap index, after the single-board computer maker narrowly beat annual core profit expectations, helped by sales of its flagship Raspberry Pi 5 as well as its semiconductor units.
Bakkavor gained 6.7% after rival Greencore agreed to buy the food manufacturer for 1.2 billion pounds following two failed bids over concerns of undervaluation.
Chemring rose 3.2% after the aerospace and defence products maker's unit Roke secured 251 million-pound multi-year missile contract from UK's Ministry of Defence.
($1 = 0.7746 pounds)
Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore
Source: Reuters