The FTSE 100 fell sharply on Wednesday, dropping 2.34 per cent at the open.
The index lost 186 points to reach 7,724.29, wiping out nearly all of Tuesday’s gains.
The sharp sell-off followed the latest round of Trump’s trade measures coming into force.
This included a staggering 104 per cent tariff on Chinese goods, sparking renewed fears of a global slowdown and tighter trading conditions.
Asian markets felt the pressure first, with Japan’s Nikkei tumbling 3.93 per cent overnight. In Europe, the fallout continued, as France’s CAC 40 fell 2.4 per cent and Germany’s DAX dropped 2.3 per cent in early trading.
The index lost 186 points to reach 7,724.29, wiping out nearly all of Tuesday’s gains
Investors are now bracing for further volatility as markets digest the full impact of the tariffs and weigh the potential knock-on effects for inflation, trade flows, and central bank decisions.
The market volatility comes as stocks have been under pressure for weeks, with the S&P 500 down five out of the past six weeks amid growing tariff uncertainty
The market volatility comes as stocks have been under pressure for weeks, with the S&P 500 down five out of the past six weeks amid growing tariff uncertaintyGETTY
Economists are sounding the alarm over the impact of Trump tariffs
Economists are sounding the alarm over the impact of Trump tariffs GETTY