The FTSE 100 experienced a significant downturn on Monday, closing at a yearly low due to investor reactions to escalating trade tensions triggered by US tariffs and retaliatory measures from other nations. The market decline mirrored a global selloff, with specific sectors and companies bearing the brunt of investor concerns.
- The FTSE 100 fell approximately 4.4%, closing at 7,702, marking a year-low.
- The drop was attributed to a global selloff fueled by Trump’s tariffs and retaliatory actions.
- Donald Trump threatened further tariff increases on China via social media.
- Top losers included Melrose Industries, RELX, Sage Group, and Rentokil Initial, experiencing losses between 7.4% and 7.9%.
- Fresnillo, a precious metals miner, was among the few gainers, adding 1.3%.
- Entain (Ladbrokes owner), Natwest Group, and Taylor Wimpey saw slight gains.
This data suggests a period of heightened volatility and risk aversion within the FTSE 100, heavily influenced by external factors such as international trade policies. The significant losses experienced by several major companies indicate a broad-based negative sentiment, while the limited gains in specific sectors like precious metals might reflect a flight to safety among investors. The overall picture is one of uncertainty, where the FTSE 100’s performance is closely tied to ongoing global economic and political developments.