UK Stock Markets Wobble Amid GDP Slump and Trade Tensions
London's stock markets fell as disappointing GDP figures and rising trade tensions troubled investors. The FTSE 100 dropped after reaching record heights, with economic contraction and U.S. tariffs contributing to unease. Sectoral gains from miners and energy contrasted with losses in luxury goods and hospitality.
London's main stock indexes experienced a downturn on Friday, affected by lower-than-expected GDP data along with escalating trade tensions led by the U.S. This follows the FTSE 100's record high achieved just a day earlier.
The FTSE 100, with a significant international focus, declined by 0.5% by mid-morning, though it remained poised for a third consecutive week of gains. Meanwhile, the midcap index shrank by 0.3% and was similarly trending towards a weekly increase. The economic shrinkage in May—evidenced by declines in industrial output and construction—compounded domestic difficulties for Finance Minister Rachel Reeves as services alone showed growth.
U.S. President Donald Trump intensified trade hostilities, declaring tariffs of 35% on Canadian goods, with additional tariffs ranging between 15-20% targeting most other trade partners. Precious metal miners led sectoral gains, buoyed by gold's climb amidst the trade war. In contrast, luxury goods took a hit, with Burberry recording a 2.2% drop alongside decreases from Dr. Martens.
(With inputs from agencies.)
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