The FTSE 100 experienced a significant downturn, falling by over 1% to its lowest point since mid-January. This decline was largely attributed to escalating concerns surrounding a potential global trade war, particularly following new tariff announcements by the U.S. President. While there were some positive corporate reports, such as Persimmon’s strong profit increase, overall market sentiment was negatively impacted by trade tensions and slowing retail sales growth.
- The FTSE 100 dropped more than 1% to close at 8,496.
- This closing value represents the lowest level for the index since January 16th.
- Concerns over an escalating global trade war intensified due to new U.S. tariffs on Canadian steel and aluminum.
- Persimmon reported a 10% increase in full-year underlying pre-tax profit.
- Retail sales growth slowed again in February, according to data from the British Retail Consortium and KPMG.
The reported downturn indicates a period of instability for the FTSE 100. The index’s vulnerability to global trade tensions is apparent, as external factors appear to be outweighing positive corporate news and domestic economic data. This suggests investors may be adopting a risk-off approach, potentially leading to further volatility in the near term.