FTSE close: Trump triggers global market sell-off ahead of ‘Liberation Day’
Investors across the globe braced for Trump’s ‘Liberation Day’ on April 2 as they hastily retreated from stock markets.
Trump will unveil a new set of tariffs on Wednesday, including a 25 per cent levy slapped on all automotive imports in the US, which has already been confirmed.
The tariffs, which the President said are designed to prevent other countries “ripping off” the US, have sent shockwaves through global markets in recent months as the White House chopped and changed its messaging on the policy, but Trump’s latest salvo has triggered yet another share sell-off.
The FTSE 100 closed at 8,582.81 on Monday marking a near one per cent loss after banks and miners dragged the index down.
The metals and miners index dropped four per cent to its lowest since February 2021 as tariff concerns intensified.
Anglo American and Rio Tinto each suffered hits of 4.8 per cent, whilst Glencore lost 4.2 per cent.
The FTSE 250, which offers a more direct reflection of the UK economy, fell nearly two per cent.
Danni Hewson, head of financial analysis at AJ Bell, said: “Donald Trump may be looking ahead to what he is calling ‘Liberation Day’, but investors might well be looking back over the past month and wishing for a do-over.
“The threat of a global trade war, the uncertainty of what might come next and the possibility it could all ultimately leave the US in recession have rattled confidence and whilst the weather might be mild the old proverb isn’t holding true when it comes to market performance.”
‘There has been no let up from Trump’
Elsewhere, markets across Europe closed on a slump. Germany’s Dax and Cac 40 in Paris slumped 1.33 per cent and 1.58 per cent respectively. Amsterdam’s AEX was down nearly one per cent.
US stocks continued to feel the sting as markets opened on Monday. The S&P 500 quickly tumbled to its lowest level since September, which placed it on track to cap off its worst quarter in three years.
The Dow Jones sharply fell as markets before trading broadly flat. The tech-heavy Nasdaq Exchange led US declines, losing over two per cent after markets opened.
Kathleen Brooks, research director at XTB, said: “Tariff fears have deepened over the weekend, there has been no let up from President Trump who said that no country would be able to avoid his reciprocal tariffs.
“This dashed any hopes for a last-minute reprieve.
“There is no where to hide in the stock market, as equities get caught up in the tariff headwinds, which is not helped by the fact that it is the last trading day of the first quarter.”