Market Jitters: Trump’s Potential Hawkish Diplomat Appointment Shakes Global Indices

London’s benchmark index, the FTSE 100, hit its lowest point in over three months amidst fears of a hawkish U.S. diplomat under President-elect Trump. Concerns also arose about Trump’s economic policies potentially affecting China. Despite the dip, some companies like Convatec Group saw a notable surge.

The FTSE 100, London's benchmark index, dropped to its lowest level in over three months on Tuesday, triggered by fears surrounding President-elect Donald Trump possibly appointing a China hawk as a leading diplomat. Market concerns intensified following disappointing corporate updates.

Industrial metal miners suffered a 5.2% drop as copper prices fell, influenced by apprehensions about Trump's policies on the economic outlook for China, the top consumer of metals. Globally, China-linked assets were pressured due to speculation that Trump might select U.S. Senator Marco Rubio, deemed strongly hawkish, as secretary of state.

Domestically, UK wage growth data revealed a decline in the third quarter, possibly reassuring the Bank of England regarding easing inflation pressures. Meanwhile, segments like the FTSE 350 personal goods index saw declines, while companies such as Convatec Group experienced a significant 22% surge in shares.

(With inputs from agencies.)