London’s FTSE 100 Index tumbled more than 1% on opening after US President Donald Trump announced a wave of tariffs and warned the European Union would be next.
The blue chip share index fell 105.8 points to 8568.2 – a fall of 1.2% – soon after the London market began trading at 8am.
Mr Trump said tariffs on imports from Europe were coming and did not rule out imposing tariffs on UK goods, but reportedly said the situation with Britain “can be worked out”.
Asia shares also mostly fell in Monday trading as worries grow about President Donald Trump imposing tariffs on key U.S. trading partners.
Japan’s benchmark Nikkei 225 lost 2.7% to finish at 38,520.09. Australia’s S&P/ASX 200 declined 1.8% to 8,379.40. South Korea’s Kospi dropped 2.5% to 2,453.95. Hong Kong’s Hang Seng dipped 0.3% to 20,160.42, while trading was closed in Shanghai for a holiday.
Analysts said Asian markets were bracing for volatility set off by a possible trade war escalation.
“The implications for trade restrictions could result in reduced global trade flows, supply chain shifts, which could mean higher costs for businesses, and higher inflation,” said Yeap Jun Rong, market strategist at IG.
Wall Street ended last week lower, with the S&P 500 falling 0.5% and the Nasdaq composite dropping 0.3%. The indexes posted their first weekly loss in three weeks, and the Dow Jones Industrial Average fell 0.8%.
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