Updated 6 February

Stocks edged higher as a more positive mood re-emerged after “Manic Monday” which saw markets react negatively to Donald Trump’s tariffs.

However, business surveys tend to be, at best, cautious, with most pointing to a weaker outlook. All of which has encouraged belief that the Bank of England will cut interest rates today from 4.75% to 4.5% to help perk up a weak economy which grew by less than expected in November, after not growing at all in the previous two months.

A further slowdown is expected as businesses brace for rising costs from April because of budgetary changes like rising National Insurance contributions and higher minimum wages.

Nissan shares slid amid speculation that its $58bn merger with Honda is on the verge of collapse. A majority of Nissan board members have rejected the deal after an attempt by Honda to turn its rival into a fully owned subsidiary.

The two groups announced discussions on a combination in December, but just over 40 days later the talks have soured, as Honda faces shareholder and internal pressure to take full ownership to revive the ailing carmaker.

UK new car sales fell for the fourth consecutive month in January, with electric and hybrid vehicle growth failing to offset declines in petrol and diesel models, according to the Society of Motor Manufacturers and Traders.

The FTSE turned upward, helped by pharmaceuticals giant GSK which surged 7.54% despite narrowly missing earnings expectations. It posted a 3% increase in annual sales to £31.38bn, slightly below the £32bn forecast, while core earnings per share of 159.3p also fell short of estimates.

Generation output from SSE Renewables over the first nine months was 26% higher than the same period in prior year, reflecting the impact from capacity additions and weather conditions. January has seen the renewables fleet continue to experience periods of variable weather conditions.

The FTSE 100 index rose 52.52 points (0.61%) to close at 8,623.29 points, while the FTSE 250 advanced 0.53%.