The FTSE 100 experienced a significant decline, closing approximately 1.6% lower at 8,475, a level not seen since mid-January. This downturn mirrored a broader global selloff driven by concerns about newly announced tariffs imposed by the US on various countries, including the UK. The market sentiment deteriorated noticeably due to this development.
- The FTSE 100 closed 1.6% lower at 8,475.
- The US president announced tariffs on the UK (10%), the EU (20%), and China (34%).
- UK Prime Minister Starmer remains committed to negotiating a deal with the US.
- Banks and financials, particularly Standard Chartered PLC (down over 13%), were the worst performers.
- Retailers (JD Sports Fashion down nearly 8%), miners, and oil companies also experienced losses.
- Defensive sectors like utilities (Severn Trent, United Utilities, SSE, and National Grid) were the top performers.
The index’s performance suggests a flight to safety among investors. Sectors vulnerable to international trade and economic growth are facing significant pressure, while those considered stable and less sensitive to economic fluctuations are showing resilience. This indicates that investors are anticipating a potential slowdown in global economic activity and are adjusting their portfolios to mitigate risk.