Feb 23 (Reuters) - The UK's FTSE 100 was subdued on Monday, as investors assessed a fresh wave of uncertainty over U.S. trade policy, while Johnson Matthey slumped after the chemical firm accepted a sharp cut to the sale price of its catalyst unit to Honeywell.
The blue-chip index (.FTSE), was up 0.1% at 1200 GMT, after closing at record highs last week. The domestically focused mid-cap FTSE 250 (.FTMC), was down 0.1%.
The market remained volatile after U.S. President Donald Trump vowed to implement a new 15% tariff on global imports, following the U.S. Supreme Court's decision on Friday to strike down his sweeping emergency-based tariffs.
For the UK, the tariff rate has increased from 10% to 15%, Unicredit analysts noted, following Trump's latest announcement.
Shares of packaging and paper group Mondi (MNDI.L), fell 3.6%, while its U.S. peers also fell, hurt by renewed tariff concerns.
Johnson Matthey (JMAT.L), slumped 16.7% to the bottom of the mid-cap index, after it agreed to slash the sale price of its catalyst technologies business to Honeywell (HON.O), opens new tab, after the unit underperformed in fiscal 2025.
British aerospace and defence stocks (.FTNMX502010), pulled back after touching a record high on Friday. Rolls-Royce Holdings (RR.L), fell 0.7% despite a media report that the engine maker is expected to launch a share buyback worth as much as 1.5 billion pounds ($2 billion) alongside its annual results this week.
Meanwhile, precious-metal miners (.FTNMX551030), rose 4% after gold climbed to a three-week high as investors sought safe-haven assets.
On the political front, support for Prime Minister Keir Starmer's Labour Party is slipping in its Manchester stronghold, where the Green Party or right-wing Reform UK could rupture decades of political tradition in an election later this month.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore
