Market Jitters: FTSE Slips Amid Trade Tensions and Defense Investments
The FTSE 100 dipped as global trade tensions rose, stemming from Trump's tariff increases on steel and aluminium. Luxury goods fell, while defense stocks rose after UK defense investment news. Meanwhile, the energy sector gained with steady OPEC+ outputs, and UK's manufacturing downturn wasn't as alarming as expected.
The FTSE 100 slipped slightly on Monday as market concerns resurfaced due to renewed global trade tensions. This follows President Donald Trump's announcement to double import tariffs on steel and aluminium.
At 0954 GMT, the FTSE 100 was down by 0.1%, dragged down by Trump's late Friday decision to increase steel and aluminium tariffs to 50%. This move has prompted warnings of retaliation from the EU. China's government also responded critically to Trump's accusations of violating a trade agreement.
Luxury brands like Burberry and Watches of Switzerland fell 1% and 2%, whereas defense stocks rose amid the UK's investment plans. The energy sector benefited from stable OPEC+ output decisions, and UK's manufacturing decline was less severe than predicted.
(With inputs from agencies.)
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