The FTSE 100 fell 0.4% on Monday as European markets slumped following fresh tariff threats from US President Donald Trump that rattled global risk sentiment. The DAX slid 1.1%, the CAC 40 dropped 1.4% and the Stoxx 600 declined 1.1%.
Investors reacted to Trump’s weekend announcement outlining plans for new U.S. tariffs on goods from several European countries, including the United Kingdom.
The levies, set to take effect on February 1 at 10%, could rise to 25% by June 1 if no agreement is reached. The escalation prompted concerns over higher import costs and the potential for economic strain on both sides of the Atlantic.
The shift into safe havens lifted precious metals sharply. Spot gold climbed 1.7% and silver surged 3.3%, boosting London-listed miners.
Fresnillo led the FTSE 100, rising 4.5%, supported by its position as the world’s largest primary silver producer and Mexico’s biggest gold miner. Other resource stocks also advanced, including Endeavour Mining, up 1.9%, Antofagasta, up 1%, and Glencore, up 0.4%.
Defence names benefited from the deteriorating geopolitical backdrop, with BAE Systems up 2% and Babcock International gaining 1.9%.
By contrast, consumer and industrial names weighed on the index. Burberry dropped 2.8%, Spirax-Sarco Engineering fell 2.5% and Smith & Nephew slipped 2.2%.
Outside the FTSE 100, WH Smith jumped 10% after announcing its intention to appoint Leo Quinn as executive chairman from April 7, 2026. The company highlighted Quinn’s more than 20 years of leadership experience at U.K.-listed firms, most recently as CEO of Balfour Beatty.
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