The FTSE 100 experienced a significant decline in afternoon trading, closing at its lowest level since mid-January. This downturn was primarily attributed to escalating global trade war concerns sparked by new tariffs imposed by the U.S. on Canadian steel and aluminum.
- The FTSE 100 dropped more than 1%, closing at 8,496.
- The close was the lowest level for the index since January 16th.
- New U.S. tariffs on Canadian steel and aluminum imports contributed to the decline.
- President Trump doubled the tariff to 50% in retaliation for Ontario imposing a 25% surcharge on electricity exported to U.S. states, a response to earlier U.S. tariffs.
- Trump threatened to impose higher tariffs on Canadian car imports.
- Persimmon reported a 10% increase in full-year underlying pre-tax profit.
- British Retail Consortium and KPMG data showed retail sales growth slowed in February.
The index’s downward trajectory appears closely linked to international trade tensions and retaliatory tariff actions. While some positive corporate news emerged, broader economic data suggesting a slowdown in retail sales further contributed to investor uncertainty and a negative outlook for the FTSE 100.