UK stocks experienced a decline on Tuesday, influenced by a global risk-off sentiment following U.S. President Donald Trump’s declaration to impose tariffs on European nations until the U.S. is permitted to purchase Greenland.
The blue-chip FTSE 100 was down 1.1% as of 1042, poised for its largest single-day decline since November 18. The domestically focused mid-cap index experienced a decline of 1%. Both indexes were poised for their most significant intraday decline since mid-November. Trump has indicated the possibility of imposing an additional 10% tariffs on imports from Denmark, Norway, Sweden, and Britain, among others, starting February 1, contingent upon the United States being permitted to purchase Greenland. This development has intensified volatility across global markets.
The trajectory of financial markets in the near term will be contingent upon the decisions made by Trump in the forthcoming days. Currently, he remains steadfast in his position, asserting that there is ‘no going back’ on his Greenland pledge,” stated Kathleen Brooks. Brooks indicated that Trump’s remarks regarding Greenland at Davos this week will be pivotal. Davos is the venue for the World Economic Forum, where global leaders, policymakers, and corporate executives are set to present their addresses. In London, pharmaceutical stocks led losses, down 2.1%, with AstraZeneca down 2.6% after the Anglo-Swedish drugmaker announced its intention to delist its American Depositary Shares and debt securities from Nasdaq.
Ibstock opens new tab shed 3.9% after the building materials supplier forecast residential construction markets to remain subdued in the near term. It was the largest decline on the FTSE 250. Conversely, precious metals miners rose 1.2%, as gold vaulted past $4,700 an ounce for the first time, while silver hovered near record highs, as Trump’s tariff threats sparked a flight to safe-haven assets. Meanwhile, data indicated a deterioration in Britain’s jobs market in advance of the government’s November budget announcement, with a deceleration in wage growth that could alleviate the Bank of England’s concerns regarding ongoing inflationary pressures.
US stocks concluded the trading session on Friday with a slight decline, as the Dow experienced the most significant drop, decreasing by approximately two-tenths of one percent. Informa opens new tab rose 2.6% to top the FTSE 100 after the events organiser launched a £200 million share buyback and forecast 6% underlying revenue growth for 2026. The media index experienced an increase of 0.9%.