FTSE 100 Dips Sharply Amid Growing Global Trade Tensions
As the U.S.–China trade conflict escalates, the FTSE 100 and global markets see significant losses. Investors brace for further volatility amid fears of an economic slowdown.
Global markets have been thrown into disarray as trade disputes between the United States and China reach new heights. The UK’s FTSE 100 index took a hit, falling nearly 5%, following a wave of selling triggered by aggressive tariff measures from Washington and swift retaliation from Beijing.
In Asia, the reaction was even more dramatic. Japan’s Nikkei 225 plunged by almost 8%, while Hong Kong’s Hang Seng Index registered a staggering 13.2% drop — one of its worst performances in years. The sell-off continued across Europe, with Germany’s DAX and France’s CAC 40 each shedding close to 6%.
Banking stocks have been among the hardest hit, with heavyweights like Barclays and NatWest experiencing losses upwards of 8%. Meanwhile, commodity markets also showed signs of distress. Brent crude slipped sharply, dropping over $10 per barrel to trade at $63.84, amid concerns that a slowdown in trade will dampen demand.
At the heart of the turmoil is a steep escalation in the U.S.–China trade war. President Trump’s administration announced sweeping new tariffs on a wide array of imported goods, with levies ranging from 10% to 50%. China responded in kind, imposing a 34% tariff on U.S. exports — sparking fears of a tit-for-tat cycle that could drag the global economy into recession.
Investors are now seeking refuge in traditional safe-haven assets. Gold prices are rising, and demand for government bonds has increased, signaling a flight to safety. Yet market analysts warn that further instability may lie ahead as trade negotiations remain uncertain and geopolitical risks continue to mount.
For now, markets remain on edge, watching closely for any developments that might ease — or further inflame — the growing tensions between the world’s two largest economies.
