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The FTSE 100 started the week under pressure as global markets reacted to renewed trade tensions sparked by former US President Donald Trump’s threat to impose tariffs on countries opposing a US takeover of Greenland. The index slipped 0.3%, falling 32 points to 10,203, reflecting broad-based risk aversion across European markets.
President Trump outlined plans for 10% tariffs from February, rising to 25% by June, targeting several European nations including the UK. The announcement unsettled investors globally, dragging European equities lower.
Despite the broader weakness, miners jumped as safe-haven demand pushed gold and silver prices higher. Fresnillo rose 5.13% to £3,938 as higher bullion prices lifted sentiment. Endeavour Mining also advanced 2.65% to £4,102, supported by the strong rally in gold.
Babcock International gained 2.56% to £1,522, extending its recent recovery, while Severn Trent added 1.59% to £2,880 as investors rotated toward defensive names.
Retailer Tesco edged up 1.33% to £427.60, and defence contractor BAE Systems rose 1.25% to £2,114, benefiting from heightened geopolitical uncertainty.
On the downside, Spirax Group fell 2.16% to £7,030, amid concerns about global growth. Ashtead Group dropped 1.92% to £5,200.
Further losses were seen in Diploma, which declined 1.67% to £5,590, and DCC, down 1.65%. Halma slipped 1.62% to £3,638, while Games Workshop eased 0.69%. To £18,840
WH Smith shares jumped 8% after the company announced the appointment of former Balfour Beatty chief Leo Quinn as executive chair.
Quinn will be granted shares worth £12.25 million, which will vest depending on the share price performance over a five-year period.
Quinn will receive a base salary of £360,000 but won’t be eligible for annual bonuses or long-term incentives.
Investors welcomed the move, viewing Quinn’s track record in corporate turnarounds as a potential catalyst for restoring growth and stability at the retailer.
Europe is planning retaliatory tariffs worth €93 billion (£80.7 billion) on US goods. The US president threatened 10% tariffs from 1 February, rising to 25% on 1 June, on the UK, Norway and six EU countries.
Talks were arranged by the EU, taking place yesterday in Brussels. Reports following suggested the EU was mulling its retaliation, with the restriction of US companies from its market in response also on the table, according to the Financial Times.
The European Parliament signalled on Saturday that it wants to freeze the US-EU trade deal, which sets US tariffs on EU imports at 15% in exchange for the EU not applying levies on US exports.
Also Read: Stock Market Today: Sensex at 83,004, Nifty Drops 170 Points on Fresh Trump Tariffs
Overseas, US equities closed slightly lower on Friday, with the Dow Jones Industrial Average down 0.2%, while the S&P 500 and Nasdaq slipped 0.1%. US markets remain closed on Monday for Martin Luther King Day.
Asian markets were mostly lower, led by Hong Kong’s Hang Seng index, which fell more than 1%, even as China reported 4.5% year-on-year GDP growth in the fourth quarter.
