In London, stocks were sharply lower on Monday, though they briefly rebounded in a volatile afternoon marked by conflicting reports about a possible pause in tariff policy.
The FTSE 100 dropped 352.9 points, or 4.38%, closing at 7,702.08. The mid-cap FTSE 250 fell 3.3pc.
In comparison, Germany’s DAX fell 4.3%, France’s CAC dropped 4.8%, Italy’s FTSE MIB declined 5.2%, and Spain’s IBEX slipped 5.1%.
The day began with steep declines in Asian markets, as fresh rounds of reciprocal tariff announcements over the weekend dampened investor sentiment and set a negative tone for global trading.
European shares tumbled during a turbulent session on Monday, with the Stoxx 600 closing at its lowest level since January 2024.
The pan-European index sank 4.5%, marking its fourth consecutive day of losses. Germany’s Dax ended the day down 4.1%, after earlier plunging as much as 10.4%.
Markets were rattled by a wave of headlines that kept investors on edge. Stocks briefly trimmed losses following a report suggesting Donald Trump was considering a 90-day suspension of tariffs for all countries except China. However, gains quickly evaporated after the White House dismissed the report as “fake news.”
“If the US catches a cold, the rest of the world catches the flu,” said Barry Knapp, managing partner at Ironsides Macroeconomics. “It was naïve to believe foreign markets could offer shelter, given the US remains the primary driver of global demand.”
