FTSE 100 Hits 14-Month Low Amid Global Market Turbulence

Britain's FTSE 100 dropped to a 14-month low amid intensified recession fears following President Trump's tariff stance. Market uncertainty led to interest rate cut speculation in the UK and US, while falling oil prices hit energy stocks. Shell saw significant losses, and British house prices fell unexpectedly.

The FTSE 100 index in Britain has plummeted to its lowest point in nearly 14 months, a downturn exacerbated by U.S. President Trump's unwavering commitment to his aggressive tariff plans. This development has rattled global markets, with investors worldwide feeling the impact.

As of Monday morning, the blue-chip FTSE 100 fell 3.8%, reaching its lowest level since February 2024. Furthermore, the midcap index, more focused on domestic companies, tumbled 4.1%, marking its weakest performance since November 2023. The turbulent economic period saw President Trump asserting that no deal would be made with China until the U.S. trade deficit was addressed, prompting Beijing to declare its retaliation plans.

The financial markets are preparing for shifts as recession fears prompt bets on the Bank of England cutting interest rates. Energy stocks faced significant losses, with Shell dropping 8.4% after adverse weather affected production forecasts in Australia. Meanwhile, a decline in British house prices signals further economic cooling.

(With inputs from agencies.)