The London Stock Market opened 100 points lower on “Manic Monday” amid the US President’s tariffs war on China, Mexico and Canada.
The blue chip index fell 112 points to 8561.55 due to heavy falls in the Asian markets overnight.
The pound fell against the US dollar at $1.228 and Bitcoin lowered 2.4% to $95.315 and France’s CAC 40 and Germany’s DAX opened lower by around 2%.
Neil Wilson, analyst at TipRanks, said President Trump’s moves are “less of a negotiating tactic than a sledgehammer.”
Wilson added, “It seems from the selling pressure that the market underestimated Trump – not for the first time.
“But whether this is resolved in short order or drags out and spirals is unknown.
“If the tariffs stay in place it would mean a significant redrawing of trade terms and currencies will need to adjust to reflect that.”
Brokers AJ Bell said, “There were only four stocks in positive territory on the FTSE 100 in early trading: Coca-Cola HBC, British American Tobacco, Imperial Brands and Haleon.
“That sums up the mood perfectly. A can of coke, a cigarette and some headache tablets are simple things that could bring someone small relief in the face of chaos.
“There was firmly a risk-off mood with investors. Tech stocks were on the scrapheap amid the prospects of rates staying higher for longer.
“Implied interest rate strength was also bad for real estate stocks, throwing cold water over the idea that we’re on a trajectory for cheap borrowing. Miners retreated as investors feared about a pullback in economic activity and how that would hurt commodities demand.”
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