FTSE 100 Dips Amid US Tariff Threats: Market Sentiment Shaken

The UK's FTSE 100 experienced a significant drop as uncertainty over US tariffs loomed large. Investors reacted to President Trump's threat of imposing a 10% tariff on European imports unless the US acquires Greenland. Market tensions rose, affecting various sectors, while safe-haven assets saw an uptick.

The FTSE 100 in the UK saw its most significant decline in nearly two weeks on Tuesday, spurred by growing uncertainty surrounding US President Donald Trump's tariff threats.

Trump's pronouncement of a potential 10% tariff on imports from eight European countries, including the UK, should the US not succeed in buying Greenland, dampened investor sentiment. As a result, the FTSE 100 closed down 0.72%, marking a low unseen in over a week, while the mid-cap index fell by 0.6%.

Meanwhile, precious metals enjoyed a boost, with gold reaching over $4,700 an ounce, as the tariff threats drove investors towards safe-haven assets. Additionally, Informa surged by 4.5% following the announcement of a substantial share buyback initiative and optimistic revenue forecasts.

(With inputs from agencies.)