London open: Stocks slide on Trump tariff worries

(Sharecast News) - London stocks slid in early trade on Monday after US President Donald Trump announced over the weekend that he will be imposing 25% tariffs on imports from Canada and Mexico, and an additional 10% tariff on China. At 0822 GMT, the FTSE 100 was down 1.3% at 8,563.32.

Trump also said over the weekend that tariffs on the European Union "will definitely happen". He said Britain is "out of line" when it comes to trade and that tariffs "might happen" but "that one can be worked out".

Chris Beauchamp, chief market analyst at online trading platform IG, said: "It looks to be a grim morning for European investors as stocks across the continent join in the general market rout. We can expect investors to sell first and ask questions later, and the urge to book profits and take cover is likely to be overwhelming.

"Hiding places are likely to be few and far between, and for the moment it looks like the dollar is the only winner.

"The weekend's news certainly puts paid to the idea that tariffs would just be a negotiating tool. Canada has already responded, and we can expect Mexico and China to take action too. The outlook for global equities just got much gloomier.

"Over the next few days, we will probably see some sectors begin to recover slightly, most obviously those where export exposure to the US is lower than others. The cost of doing business with the world's largest and strongest economy is only likely to go up from here, taking down margins with it.

"Cheaper valuations in Europe might mean that indices manage to stabilise earlier than in the US, but that will be little comfort to investors in coming days."

In equity markets, heavily-weighted miners were among the worst performers as metals prices fell, with Antofagasta, Anglo American and Glencore all lower.

Barclays was also under the cosh after customers were locked out of their accounts on Friday and Saturday due to an IT glitch.

Market Movers

FTSE 100 (UKX) 8,563.32 -1.28% FTSE 250 (MCX) 20,590.91 -1.72% techMARK (TASX) 4,729.06 -0.98%

FTSE 100 - Risers

Coca-Cola HBC AG (CDI) (CCH) 2,840.00p 1.07% British American Tobacco (BATS) 3,218.00p 0.66% Imperial Brands (IMB) 2,726.00p 0.18% Haleon (HLN) 374.90p 0.05% Rightmove (RMV) 669.40p 0.00% RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 0.00% Smith (DS) (SMDS) 582.50p 0.00% Relx plc (REL) 4,020.00p -0.12% Tesco (TSCO) 371.60p -0.16% Centrica (CNA) 142.20p -0.21%

FTSE 100 - Fallers

Intermediate Capital Group (ICG) 2,282.00p -3.71% Antofagasta (ANTO) 1,661.00p -3.71% Scottish Mortgage Inv Trust (SMT) 1,046.00p -3.64% JD Sports Fashion (JD.) 86.18p -3.30% Legal & General Group (LGEN) 234.50p -3.22% St James's Place (STJ) 1,021.00p -3.13% Barclays (BARC) 288.00p -3.03% SEGRO (SGRO) 695.80p -3.01% Entain (ENT) 686.00p -2.94% Anglo American (AAL) 2,311.00p -2.92%

FTSE 250 - Risers

FirstGroup (FGP) 169.90p 4.17% Bakkavor Group (BAKK) 138.00p 3.37% Morgan Advanced Materials (MGAM) 281.50p 2.74% Senior (SNR) 169.00p 2.30% Telecom Plus (TEP) 1,708.00p 2.15% TBC Bank Group (TBCG) 3,395.00p 1.65% Discoverie Group (DSCV) 653.00p 1.40% Energean (ENOG) 936.50p 1.08% Frasers Group (FRAS) 640.00p 0.63% Sequoia Economic Infrastructure Income Fund Limited (SEQI) 77.70p 0.52%

FTSE 250 - Fallers

Ferrexpo (FXPO) 103.20p -6.86% Aston Martin Lagonda Global Holdings (AML) 99.50p -5.69% Polar Capital Technology Trust (PCT) 357.00p -4.80% Allianz Technology Trust (ATT) 423.00p -4.51% Watches of Switzerland Group (WOSG) 550.50p -4.26% W.A.G Payment Solutions (WPS) 72.60p -4.22% Ocado Group (OCDO) 290.10p -4.04% Wetherspoon (J.D.) (JDW) 600.00p -4.00% CMC Markets (CMCX) 216.00p -3.79% Carnival (CCL) 1,972.50p -3.78%