(Reuters) – British stocks rose on Friday, driven by gains in defence and mining stocks, after a chopppy week filled with uncertainty around U.S. tariffs.

The benchmark FTSE 100 was up 0.6% at 1112 GMT. However, the index was poised to lose 1% for the week, its second consecutive weekly decline, as volatility triggered by back and forth on U.S. tariff policies, and downbeat quarterly earnings, pressured equity markets.

The midcap index was up 0.7%, but was set to lose 1.4% for the week, its fourth straight week in the red.

Precious and industrial metal miners rose 2.7% and 2.6%, respectively, leading sectoral gains, after spot gold prices crossed the key $3,000 mark for the first time. [GOL/]

Meanwhile, Britain’s economy unexpectedly contracted in January, with the gross domestic product falling 0.1% versus expectations of a 0.1% monthly expansion from economists polled by Reuters.

“Should President Trump continue ramping up tariffs, however, the chances of a UK soft patch in the middle of the year will rise, especially if the UK gets snared in the net of reciprocal tariffs,” economists at Pantheon Macroeconomics wrote.

A Bank of England survey showed British long-term inflation expectations hit a five-year high in February.

Meanwhile, aerospace and defence stocks were up 2.2%, among the top sectoral gainers, after Britain announced a 2 billion pound boost in lending to other countries to buy British missiles and aircraft.

Melrose Industries was the top FTSE 100 gainer, and Rolls Royce and BAE Systems gained more than 2%. Babcock International Group gained 2.2%, boosting the midcap index.

Miner Anglo American jumped 3.3%.

British recruiter Hays gained 10.5%, set for its best day since November 2020.

Bodycote lost 7.8%, after the thermal processing services provider warned of temporary supply chain disruption.

Globally, the likely avoidance of a U.S. government shutdown also helped lift equity markets.

(Reporting by Sanchayaita Roy; Editing by Shinjini Ganguli)