London’s FTSE 100 experienced a decline on Monday, influenced by a stronger sterling that weighed on the export-oriented index. This movement occurred in the context of rising tensions between the Trump administration and the Federal Reserve Chair, alongside a downturn in bank stocks following U.S. President Trump’s proposal for a credit card rate cap. The blue-chip FTSE 100 was down 0.07% by 1032. Meanwhile, the domestically focused mid-cap index slipped 0.2%, on pace to snap a five-day streak of gains.

The pound appreciated against the dollar, rising by 0.4%, following threats from the Trump administration of a criminal indictment against Fed Chair Jerome Powell, a development that may jeopardize the greenback’s status as a safe haven. Banking stocks experienced significant pressure following President Donald Trump’s announcement on Friday, which proposed a one-year cap on credit card interest rates at 10%, effective January 20, although specifics were not disclosed. Barclays opened new tab fell 3.3% and Close Brothers Group opened new tab slid 1.2%.

The move also prompted investors to flee to safe-haven assets, with the index of precious metal miners jumping 4.3%, after gold struck a record high of more than $4,600 an ounce. Meanwhile, Britain’s job market exhibited signs of cooling in December, with hiring declining for the 39th consecutive month. Despite this, starting salaries experienced an increase, which continues to keep the Bank of England’s attention on potential rate cuts following the decision made in December.

Among other stocks, British semiconductor wafer maker IQE jumped 34.6% after the company stated it anticipates its revenue and adjusted core profit for fiscal 2025 to be at the upper end of its forecasts. Oxford Nanopore Technologies was up 7% after the biotech firm forecast annual revenue growth ahead of its forecast.