UK Shares Plummet Amidst Global Trade Tensions and Economic Unrest

UK shares dropped on Monday as President Trump's tariffs intensified the global trade war. The FTSE indices declined while discussions of a UK-U.S. economic deal continued. Individual stocks such as Associated British Foods and Pets at Home faced setbacks, while Aston Martin saw gains with new investments.

In a turbulent start to the week, UK shares took a significant hit on Monday following U.S. President Donald Trump's announcement of expansive reciprocal tariffs, which exacerbated international trade tensions. The blue-chip FTSE 100 index fell by 1%, while the midcap FTSE 250 index plummeted by 1.9%, reaching its lowest point in over eleven months.

The economic conversation continued over the weekend as British Prime Minister Keir Starmer and President Trump engaged in what was described as 'productive negotiations' for a UK-U.S. economic prosperity agreement. This development comes amid mixed signals from Trump on tariffs, with reports suggesting a lean towards more aggressive economic measures.

Meanwhile, on the corporate front, several UK companies faced challenges. Associated British Foods saw a 2.7% decline after Primark's CEO resigned under allegations of misconduct. Pets at Home Group projected a significant drop in fiscal 2026 profits due to rising costs. Conversely, Aston Martin's shares rose by 9.4% as it announced funding efforts, spurred by a share sale and investment from its Chairman.

(With inputs from agencies.)