London midday: Stocks slide as Trump tariffs rattle markets again

(Sharecast News) - London stocks had extended losses by midday on Monday as Donald Trump rattled markets yet again, threatening to impose reciprocal tariffs on "all countries".

The FTSE 100 was down 1.2% at 8,555.93.

Speaking to reporters on board Air Force One on Sunday, the US President said that his tariff announcement on 2 April would "start with all countries".

Russ Mould, investment director at AJ Bell, said: "Another day, another sell-off on the markets, marking 2025 as one of the most gruelling starts to a calendar year for investors in quite a while.

"It's not all doom and gloom though as some parts of the world are still up year-to-date, including China, Germany and the UK.

"Donald Trump continues to be the key reason why markets are having a bad day. He has now threatened to target all countries importing goods into the US with tariffs, further clouding economic prospects around the world. Investors raced for protection by buying gold and defensive stocks including tobacco manufacturers and utilities.

"When things are looking bleak, it's natural for investors to hide in certain parts of the market that either act as safe havens or industries whose demand should be unaffected by fluctuations in the economy."

In equity markets, BA and Iberia owner IAG was the worst performer on the FTSE 100.

Heavily-weighted miners - cyclical stocks - were also under the cosh, with Glencore, Anglo American, Antofagasta and Rio Tinto among the worst performers.

Associated British Foods fell as it said that Paul Marchant has resigned as Primark chief executive with immediate effect after a woman made a complaint about his behaviour "in a social environment".

Group finance director Eoin Tonge will act as Primark CEO on an interim basis. Marchant's departure follows an investigation, initiated by ABF and carried out by external lawyers. It was not clear whether the complaint was made by a staff member or third party.

Pets at Home tumbled as it said profits were set to fall next year as an uncertain economic backdrop and increased costs take their toll.

Wood Group tanked after saying it plans to suspend trading of its shares from the end of April as it needs more time to get its results out. The company said a review identified "material weaknesses and failures" in its "financial culture within the projects business unit and engagement between group finance and projects".

It also said it expects "material" prior year P&L and balance sheet adjustments for FY22, FY23 and HY24.

On the upside, defensive stocks rallied, with utilities such as Severn Trent, United Utilities and National Grid all higher, and tobacco firms Imperial Brands and British American Tobacco also in the black.

Luxury car maker Aston Martin surged to the top of the FTSE 250 as it said that chairman Lawrence Stroll's Yew Tree Consortium would plough another �52.5m into the company, lifting its stake to around 33%.

Market Movers

FTSE 100 (UKX) 8,555.93 -1.19%

FTSE 250 (MCX) 19,485.82 -1.91%

techMARK (TASX) 4,594.84 -1.37%

FTSE 100 - Risers

Imperial Brands (IMB) 2,855.00p 1.03%

British American Tobacco (BATS) 3,153.00p 0.93%

Severn Trent (SVT) 2,519.00p 0.92%

Haleon (HLN) 392.10p 0.56%

Unilever (ULVR) 4,608.00p 0.46%

Reckitt Benckiser Group (RKT) 5,254.00p 0.42%

London Stock Exchange Group (LSEG) 11,555.00p 0.22%

United Utilities Group (UU.) 1,006.50p 0.20%

Next (NXT) 10,995.00p 0.05%

Relx plc (REL) 3,888.00p 0.03%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 261.90p -6.23%

Glencore (GLEN) 280.05p -4.27%

Entain (ENT) 588.40p -3.92%

Anglo American (AAL) 2,165.50p -3.91%

Rio Tinto (RIO) 4,542.00p -3.69%

St James's Place (STJ) 976.00p -3.46%

Whitbread (WTB) 2,403.00p -3.34%

JD Sports Fashion (JD.) 69.58p -3.31%

Schroders (SDR) 346.60p -3.24%

Antofagasta (ANTO) 1,677.00p -3.18%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 70.45p 7.97%

Moonpig Group (MOON) 212.00p 2.66%

Keller Group (KLR) 1,394.00p 1.01%

W.A.G Payment Solutions (WPS) 59.80p 1.01%

PRS Reit (The) (PRSR) 115.60p 0.87%

TI Fluid Systems (TIFS) 199.00p 0.61%

Vietnam Enterprise Investments (DI) (VEIL) 590.00p 0.51%

Energean (ENOG) 874.00p 0.46%

Foresight Environmental Infrastructure Limited (FGEN) 71.50p 0.42%

Foresight Solar Fund Limited (FSFL) 79.90p 0.38%

FTSE 250 - Fallers

Pets at Home Group (PETS) 209.40p -11.42%

Close Brothers Group (CBG) 276.40p -7.81%

Raspberry PI Holdings (RPI) 469.40p -5.71%

Discoverie Group (DSCV) 538.00p -5.28%

IP Group (IPO) 40.65p -5.24%

Paragon Banking Group (PAG) 734.50p -4.92%

AO World (AO.) 94.20p -4.85%

Ocado Group (OCDO) 280.50p -4.69%

THG (THG) 32.08p -4.64%

Mobico Group (MCG) 59.15p -4.44%