LONDON: London shares fell on Monday as US President Donald Trump’s tariff threats against Britain and seven other European nations sent shockwaves through global markets, though a bright spot emerged as insurer Beazley surged to a record high on a sweetened takeover bid from Zurich Insurance.
The blue-chip FTSE 100 finished 0.4 percent lower. The domestically focused mid-cap index fell 0.9 percent, marking its steepest one-day decline since late November.
Trump said on Saturday he would impose an additional 10 percent tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1. Those tariffs would climb to 25 percent by June 1 unless the US was allowed to buy Greenland.
The announcement unsettled global markets, with volatility returning to trading floors.
Major EU states condemned the tariff threats as blackmail, and France proposed responding with a range of previously untested economic countermeasures.
British Prime Minister Keir Starmer, meanwhile, called for calm discussions to resolve the stand-off.
The tariff threats also cast a shadow over trade deals the US struck with Britain in May and the EU in July. Both limited agreements have already drawn criticism for their lopsided nature, favouring Washington.
Losses rippled across London’s stock market, with automobiles and parts subindex sliding 1.8 percent lower.
Luxury retailers too bore the brunt, with Burberry and Watches of Switzerland Group leading the losses with falls of 2.8 percent and 2.3 percent, respectively.
However, the non-life insurance sector provided a bright spot, cushioning the FTSE 100 from broader investor nerves. Beazley soared 42.9 percent to a record high after Zurich Insurance Group offered 1,280 pence per share for the British speciality insurer.
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