London Markets Turbulence Amid Trump's Tariff Tensions

London shares fell sharply as Trump's new tariffs increased fears of a global trade war. The FTSE 100 and FTSE 250 hit significant lows, with UK banks and personal goods suffering. Despite trade deal hopes, the market saw losses amid concerns over economic growth, with contrasting gains in utilities and pharma stocks.

London's financial markets faced turmoil on Thursday as investors shunned risky assets following U.S. President Donald Trump's announcement of new tariffs. The blue-chip FTSE 100 plunged 1.6%, marking its steepest daily decline since August 2024, while the FTSE 250 fell 2.2%, reaching a one-year low.

The tariffs, set at a baseline of 10% for all imports, fueled global recession fears and raised the specter of economic stagflation. Aiming to mitigate the potential fallout of these duties, London expressed optimism about finalizing a trade agreement with the U.S. shortly.

Amid tariff-induced volatility, UK bank shares declined drastically, with HSBC Holdings and Barclays among the biggest losers. Conversely, utilities gained 4.2% amid the market upheaval, and pharma stocks saw a moderate increase due to temporary tariff exemptions. Currys bucked the trend, jumping 14.9% after upwardly revising its annual profit forecast.

(With inputs from agencies.)