UK Shares Dive Amid Escalating US-China Trade Tensions

UK stock markets plummeted as recession fears grew following China's tariff retaliation against the US. The FTSE 100 and midcap index suffered significant declines. Bank and mining stocks dropped sharply, while bond yields fell. Construction industry optimism decreased alongside weak orders.

UK shares experienced a steep decline on Friday, poised to end the week with hefty losses amid heightened recession fears. This downturn followed China's decision to impose additional tariffs on US imports in response to President Donald Trump's sweeping tariffs announcement.

By 1110 GMT, the FTSE 100 index had dropped 3.8%, marking its steepest weekly decline since February 2022. Similarly, the midcap index fell 4%, facing its worst week since March 2020. Banks and mining stocks took a heavy hit, with Barclays leading the losses.

Economic concerns anchored on tariffs triggered a rise in bets on further Bank of England interest rate cuts. Meanwhile, the construction industry grappled with shrinking activities and dwindling optimism, reflecting broader economic uncertainties.

(With inputs from agencies.)