Trade Tensions Roil British Markets Amid Starmer's Diplomatic Push

British stocks plummeted as the FTSE 100 and 250 indices fell significantly, influenced by increased trade tensions following U.S. tariff threats against China. UK Prime Minister Keir Starmer aims to reduce trade barriers despite the economic turmoil. Sector leaders like AstraZeneca and Shell saw substantial losses.

British stock markets faced a downturn on Monday, with the FTSE 100 and FTSE 250 indices experiencing steep declines. The slump followed U.S. President Donald Trump's threat to implement a 50% tariff on China, exacerbating trade tensions globally.

Industry leaders, including pharmaceutical giant AstraZeneca and energy company Shell, reported significant setbacks, the former dropping nearly 7% and the latter adjusting its LNG production due to adverse weather in Australia. Energy stocks overall fell as oil prices hit a four-year low.

In a response to the trade uncertainties, UK Prime Minister Keir Starmer committed to pursuing economic partnerships with the U.S. and reducing trade barriers. Amid these developments, the Bank of England faces potential interest rate cuts, further reflecting the financial volatilities.

(With inputs from agencies.)