FTSE 100 Tumbles Amid Trump's Tariff Threats Over Greenland

The UK's FTSE 100 experienced its largest daily drop in two weeks as President Trump's tariff threats concerning Greenland affected investor sentiment. European markets face increased volatility, creating selective opportunities in certain sectors, while precious metals rose in response to the geopolitical tensions.

The UK's blue-chip FTSE 100 index suffered its sharpest one-day decline in nearly two weeks on Tuesday, driven by unsettling geopolitical tensions. The slide came as U.S. President Donald Trump threatened new tariffs on European imports unless Greenland is made purchasable by the U.S., impacting overall market confidence.

The FTSE 100 and domestically focused mid-cap index both fell, the latest reaction to Trump's proposed 10% tariffs on imports from eight European nations. The potential tariffs create further volatility in global markets, notably affecting pharmaceutical and insurance stocks in London.

Conversely, precious metals saw an upswing, with gold prices exceeding $4,700 an ounce as investors sought safe-haven assets amid the tariffs uncertainty. Meanwhile, Informa climbed the FTSE 100 index with an optimistic revenue growth forecast and a substantial share buyback initiative.