UK Shares Tumble Amid Global Trade Tariff Tensions

UK shares declined as global markets anticipated U.S. President Trump's announcement on reciprocal tariffs, sparking trade war fears. The FTSE 100 fell 0.8%, and the FTSE 250 dropped 0.7%. The aerospace and defence sector saw the largest drop. Meanwhile, pay awards in the UK cooled, aligning with slow wage growth.

On Wednesday, UK shares experienced a downturn as global markets awaited U.S. President Donald Trump's impending announcement on reciprocal tariffs, heightening fears of a growing trade conflict. Market anxiety intensified over potential disruptors to decades-long trade practices.

The blue-chip FTSE 100 index dropped by 0.8% by 1035 GMT, while the midcap FTSE 250 index fell 0.7%, erasing most gains from the previous session. Aerospace and Defence sectors led the decline with a 2.5% drop, and significant healthcare stocks suffered losses ahead of the tariff news, with AstraZeneca, GSK, and others markedly impacted.

In addition, the healthcare index hit a near two-month low, declining 2.2%. A survey indicated UK's sluggish pay awards, complemented by slowing wage growth data, suggesting potential Bank of England rate cuts. Topp Tiles and Raspberry Pi reported significant swings in stock price due to operational and financial revelations.

(With inputs from agencies.)