FTSE 100 Faces Economic Turmoil Amid Global Concerns

The FTSE 100 index dropped to its lowest in over three months due to fears of a potential appointment of a China hawk by Trump and adverse corporate updates. Other contributing factors include falling industrial metal prices and setbacks in the personal goods sector.

On Tuesday, London's FTSE 100 index recorded a significant decline, hitting its lowest point since early August. Concerns over Donald Trump potentially appointing a China hawk as U.S. Secretary of State, alongside disappointing corporate updates, fueled the economic unease.

The index's decline was notably influenced by a 2.4% downturn in industrial metal miners, amid fears over the economic impact on China, the leading metals consumer. Expectations that Trump might select Senator Marco Rubio, the most hawkish candidate on Trump's list, further aggravated global market concerns.

In additional financial news, a sharp fall in personal goods and telecoms sectors worsened market conditions. Meanwhile, the medical equipment sector saw gains, notably Convatec's 20% rise and Drax's 6.6% increase, which helped balance out losses. However, attention also turned to domestic issues like falling wage growth, complicating the broader economic outlook.

(With inputs from agencies.)