FTSE steady after fresh Trump tariff chaos weighs on stocks and pushes gold higher
The FTSE’s record run was briefly interrupted after Donald Trump imposed a new 15 per cent tariff over the weekend, deepening global trade uncertainty.
The FTSE 100 opened 0.2 per cent lower before regaining some ground after a record run this year, which saw it pass 10,700 points at one point last week. It is now trading relatively flat at 10,689 points.
It came after the US President announced a new round of tariffs after the Supreme Court ruled that his previous policy was unlawful.
Global stocks rose on Friday after the ruling before opening in the red this morning, as concerns of another trade war rocked investor sentiment.
The US President has imposed a fresh set of tariffs deepening trade uncertainty
Susannah Streeter, chief investment strategist at the Wealth Club said: ‘The exuberance that flashed over global markets after the US Supreme Court rejected Trump’s tariffs as unconstitutional is evaporating.
‘The President is using a backdoor via the Trade Act to reimpose temporary blanket tariffs of 10 per cent and has threatened to increase the rate to 15 per cent.
‘Bilateral deals reached through tortuous negotiations have been thrown up in the air again, creating a cloud of uncertainty.’
The dollar has suffered fresh falls, with the dollar index down 0.35 per cent with Wall Street expected to open around 0.5 per cent lower this afternoon.
The FTSE 100 opened around 20 points lower as a stronger pound weighed on companies earning the majority of their revenues overseas.
Defence stocks were among the biggest fallers, with BAE Systems, Babcock and Melrose down over 1 per cent, while JD Sports rose nearly 5 per cent after announcing a fresh £200million share buyback.
With the European Union already considering retaliation, France and Germany’s leading indices opened in the red.
Meanwhile, the FTSE 250 opened 0.3 per cent lower as the impact of another round of tariffs weighed on domestic stocks.
As investors grappled with further chaos, gold enjoyed another upward run after weeks of volatility. The precious metal rose to over $5,200 before settling at $5,146 by 9am.
FTSE 100-listed mining companies enjoyed a bounce off the back of it, with Fresnillo and Endeavour Mining both trading up around 3 per cent.
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