The FTSE 100 slid to its lowest level for a year as global stock markets remained in turmoil following US president Donald Trump’s tariff announcement last week.
Monday’s session began with firm drops in the Asian markets after more reciprocal tariff announcements over the weekend weighed on trading sentiment.
In London, stocks were also heavily depressed during the session, although they briefly swung higher during a rollercoaster afternoon amid conflicting reports over a potential pause in tariff policy.
The FTSE 100 declined by 352.9 points, or 4.38%%, to close at 7,702.08.
Axel Rudolph, senior technical analyst at IG, said: “The global stock market sell-off intensified on Monday after China retaliated against the US with reciprocal tariffs.
“Some Asian stock indices fell by 10% on the day with the S&P 500 entering bear market territory with several European indices close on its heels.”
Stateside, the continued downturn moved Wall Street towards “bear market” territory on Monday, when there is a sustained drop of 20% or more, with the S&P heavily down last month’s peak.
US stocks dropped more sharply after the president threatened further tariffs against China if they fail to halt their retaliatory action.
Elsewhere in Europe, sentiment was also particularly volatile. The Cac 40 ended 4.78% lower for the day and the Dax index was down 4.26%.
Meanwhile, sterling slid to lowest level against the dollar for a month amid growing concerns over the potential for a global recession.
The pound was down 1.28% at 1.272 US dollars and was down 0.87% at 1.165 euros when London’s markets closed.
In company news, Shell was lower in value after the oil giant reduced its outlook for liquefied natural gas (LNG) production in the first months of 2025.
The fossil fuel firm said LNG production reached between 6.4 million and 6.8 million metric tonnes in the first three months of this year, down from a previous forecast of 6.6 million to 7.2 million tonnes.
Shares in the company were down 4.47% to 2,370.5p during the session, as it was also impacted by its exposure to the US market.
De La Rue shares were among the day’s climbers after the banknote printer told shareholders a £300 million sale of its authentication arm will go through next month.
The company said it has agreed a deal with US-listed group Crane NXT, which will complete on May 1.
Shares in De La Rue were up 4.63% at 113p at the close.
Applied Nutrition finished the session slightly higher after the Liverpool-based company said it could move the production of some of its products to the US to avoid future tariff costs as the brand revealed higher sales.
Shares climbed in afternoon trading to close up 0.9% at 112p despite a drop in profits for the past half-year.
Meanwhile, the price of oil dropped to its lowest level for around four years as concerns over the impact of tariffs on global trade hit the commodity.
A barrel of Brent crude oil was down by 2.12% to 64.19 dollars (£50.48) as markets were closing in London.
The biggest risers on the FTSE 100 were Fresnillo, up 11p to 833.5p, Entain, up 2p to 503.2p, NatWest Group, up 1.6p to 415p, Taylor Wimpey, up 0.3p to 103.95p, and Howden Joinery, up 1.5p to 682p.
The biggest fallers on the FTSE 100 were Melrose Industries, down 33.4p to 391.6p, Relx, down 299p to 3,517p, Sage Group, down 92p to 1,097p, Rentokil, down 24.8p to 309.5p, and Intertek, down 334p to 4,206p.