Tariff Tug-of-War: UK Markets Rattle Amid Global Trade Tensions

British stocks tumbled as pharmaceutical shares slumped due to escalating tariffs between the U.S. and China. The FTSE 100 fell 2.9% and sectoral declines were pronounced, with Trump's tariff threats exacerbating global economic fears. Amidst all, JD Sports bucked the trend with a significant gain.

On Wednesday, the British stock market experienced a downturn with pharmaceutical stocks suffering the most as trade tensions between the United States and China intensified. The blue-chip FTSE 100 saw a 2.9% decline as expectations for a resolution diminished with China's announcement of steep tariffs on U.S. goods.

In a move expected to heighten global trade anxieties, U.S. President Donald Trump hinted at new tariffs targeting pharmaceutical imports, leading to a 6.1% drop in pharma stocks. Notably, AstraZeneca and GSK bore the brunt, falling significantly amidst the heightened tariff threats.

While most sectors saw significant declines, precious metal miners benefited from the safe-haven demand for gold. Meanwhile, JD Sports reported a 9.5% gain, defying the market slump with its optimistic annual profitability forecast. Assura also marked gains following a buyout deal by KKR-Stonepeak consortium.

(With inputs from agencies.)