FX.co ★ UK Shares Fall to Over 1-Year Low

On Monday, the FTSE 100 experienced a significant decline, dropping over 4.5% and slipping below the 7,700 mark for the first time in more than a year. This downturn was part of a larger global selloff prompted by President Trump's implementation of tariffs. Investor concerns regarding potential impacts on economic growth increased following China's announcement of retaliatory measures, heightening the prospect of an outright trade war. Despite such apprehensions, President Trump dismissed worries about inflation or a possible recession, expressing confidence in an impending market boom. The selloff was widespread, with all FTSE 100 stocks in negative territory. Even defense stocks saw declines amid growing concern over potential supply chain disruptions. U.S.-based Howmet Aerospace declared force majeure, attributing this decision to the national emergency and tariffs, which raised alarms about potential global shocks to the defense and aerospace industries. Companies such as Melrose, Babcock, Rolls-Royce, and BAE Systems notably underperformed compared to the broader index.