A man sits before a screen displaying a declining market indicator.

A man sits before a screen displaying a declining market indicator.



Overview:
European stock prices have plummeted, while Asian markets have experienced their most significant downturn in decades, as the fallout from Donald Trump's tariffs continues to affect the financial landscape. In London, the FTSE 100 index reached its lowest point in a year, dropping by 6% at one stage. According to our deputy economics editor, Dharshini David, fear is driving these declines, as markets begin to accept that tariffs might be a long-term reality. In defense of his policies, Trump posted on social media that oil prices and inflation are decreasing, while tariffs are "generating billions of dollars weekly." Earlier today, US futures were sharply down, suggesting that Wall Street stocks are poised for a decline when the US markets open at 09:30 EST (14:30)

Live Coverage:
Reported by Owen Amos and Jacqueline Howard European officials are eager for a deal with the US but are not ruling out retaliation, trade ministers have stated. Published at 05:17 At 05:17, Irish Trade Minister Simon Harris expressed optimism that most EU nations are open to negotiating with the US, speaking to reporters before a meeting of EU trade ministers in Luxembourg. "They do not accept that our current situation is the final outcome... I truly believe the economic argument is on our side," he told the BBC. Harris emphasized the importance of European unity and adopting a "calm and measured approach" by taking it "step by step." His French counterpart, Laurent Saint-Martin, noted that while their meeting aims to negotiate a deal, the EU must respond "firmly and proportionately" to avoid a trade war. "We should not rule out any options concerning goods and services... and we should leverage the comprehensive and potentially aggressive toolbox available to Europe," he explained. The declines in the London stock market have led the FTSE 100 index to its lowest level in a year. Following an initial drop of approximately 6%, the index has started to recover, now down 4%.

Aerospace company Melrose Industries suffered the largest drop on the index, falling by 6.6%. Shares of oil giant Shell dropped by 5.2% as crude prices continued to decline. Earlier on Monday, none of the 100 stocks in the index had experienced gains; however, a few have begun to rise, including Taylor Wimpey, gambling group Entain, and Lloyds Banking Group, all of which have seen slight increases.
BBC