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FTSE 100 up 0.1%, FTSE 250 down 0.16%

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BP flags weaker oil trading while upstream output grows

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Homebuilders index climbs on government's planning reforms

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Bellway ( BLWYF ) gains on higher FY results, launches share buyback

Oct 14 (Reuters) - London's FTSE 100 closed modestly

higher on Tuesday, as mounting U.S.-China trade tensions kept

investors on edge, while losses in industrial metal miners were

offset by gains in consumer staples.

The blue-chip FTSE 100 edged up 0.1% recovering

earlier losses, while the domestically focused FTSE 250

fell 0.16%.

On Friday, global stocks slumped after U.S. President Donald

Trump threatened 100% tariffs on Chinese goods in response to

Beijing's rare earths export controls.

Markets rebounded on Monday after Trump struck a softer tone

over the weekend, but tensions flared again on Tuesday when both

countries began charging additional tit-for-tat port fees on

ocean shipping firms that move everything from holiday toys to

crude oil.

In the market, the British homebuilders index

outperformed peers with 2.2% gains after the government unveiled

planning reforms aimed at speeding up housing construction.

Bellway ( BLWYF ) rose 5.3% after it raised its dividend and

announced a 150-million-pound ($199.20 million) share buyback

after beating annual pretax profit expectations.

Peers Persimmon and Berkeley were among the

top gainers in the FTSE 100, up 2.6% and 2.4%, respectively.

EasyJet ( EJTTF ) jumped 8% emerging as the top performer in FTSE

100 after media reports of the budget airliner's possible

acquisition by global shipping company Mediterranean Shipping.

Meanwhile, the International Monetary Fund slightly raised its

growth forecast for Britain this year but lowered it for 2026,

and projected the country to have the highest inflation among

major advanced economies in both 2025 and 2026.

Growth in average British earnings slowed slightly in the three

months to August, official data showed on Tuesday, suggesting

the Bank of England may be able to continue cutting interest

rates, albeit very gradually.

BoE officials held interest rates at 4% last month while keeping

an eye on inflationary pressures, including wage growth.

Meanwhile, investors are fully pricing in the next rate cut only

by April 2026, according to LSEG data.

Keeping gains at check, industrial metal miners

shed 1.2%, tracking weaker copper prices.

Anglo American and Glencore ( GLCNF ) were among the

biggest losers on the FTSE 100, falling 2.8% and 1.1%

respectively.

Energy heavyweight BP dropped 1.3% after flagging weak

oil trading performance.