UK stocks surged on Tuesday, with the FTSE 100 up 1.4% and the FTSE 250 rising 1.5%. Financial and defence stocks led the gains after US President Donald Trump hinted at possible exemptions on auto-related tariffs. Investment banking firms and brokerage services saw a 4.5% increase, with 3I Group topping the FTSE 100 with a 6.1% jump. Aerospace and defence stocks also climbed, with Rolls Royce rising 3% after being named the principal contractor for a potential sale of engines to Israel. B&M and Tate & Lyle were among the top performers on the midcap index.