FTSE 100 drops as global trade tensions and corporate setbacks weigh on UK shares
UK shares dropped on Monday after US President Donald Trump hinted that his planned reciprocal tariffs would target all countries, escalating fears of a global trade war.
The blue-chip FTSE 100 index fell 1% by 1011 GMT, while the midcap FTSE 250 dropped 1.9%, reaching its lowest point in over 11 months, news agency Reuters reported.
Speaking to reporters on Sunday, Trump indicated that his tariffs would impact all nations, with a formal announcement expected on Wednesday, followed by auto levies on Thursday. The specifics of the tariffs remain unclear.
In a phone call on Sunday, British Prime Minister Keir Starmer and Trump discussed “productive negotiations” regarding a UK-US economic prosperity deal, according to Downing Street.
Although Trump suggested on Friday that some countries might be exempt from the tariffs, reports over the weekend indicated he was pushing advisers toward more aggressive actions.
Further weighing on investor sentiment, Bank of England data revealed that British mortgage approvals slowed in February, and consumer credit growth also decelerated compared to the previous month.
Several individual stocks declined sharply
Associated British Foods fell 2.7% after the resignation of Paul Marchant, the CEO of its Primark clothing business, following allegations regarding his behaviour toward a woman in a social setting.
Pets at Home Group plummeted 11.6% after the company warned that its fiscal 2026 underlying pre-tax profit would decline significantly due to rising costs and weak demand for pet accessories.
Wood Group saw a dramatic 29.1% drop after the oilfield services firm revealed “material weaknesses and failures” in its financial culture within its projects business unit, following an independent review by Deloitte.
On a more positive note, Aston Martin gained 9.4% after the luxury carmaker announced plans to raise over £125 million ($161.9 million) through funding from Chairman Lawrence Stroll’s investment vehicle and the sale of a minority stake in his Formula One team.
