(Reuters) – British shares fell on Monday as worries about global growth and uncertainties around U.S. tariffs continued to keep investors on edge.
The blue-chip FTSE 100 lost 0.5% at 1050 GMT, on track for a fifth straight session of declines, if losses hold.
Investors remained concerned about an escalating global trade war, after U.S. President Donald Trump declined to predict whether the U.S. economy could face a recession due to tariffs imposed on Mexico, Canada and China over fentanyl.
“Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“The prospect of a recession in the U.S. is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous.”
Heavyweight bank and pharma stocks were down 2.2% and 1.4%, respectively, leading sectoral declines.
The midcap FTSE 250 lost 0.2%.
Clarkson slumped 17.5%, dragging down the midcap index, after the shipping services company flagged the impact of geopolitical uncertainty on its near-term outlook.
Keeping losses at check, Assura gained 14.2%, after the British healthcare real estate investment trust said it would consider a 1.61 billion pound ($2.1 billion) offer from U.S. private equity group KKR and Stonepeak Partners.
Shares of Deliveroo rose 1.9% after the meal delivery company said it would exit its Hong Kong operations and sell some assets to Delivery Hero’s foodpanda.
Meanwhile, a survey showed that Britain’s jobs market cooled in February, with slower hiring and the smallest rise in starting salaries in four years, highlighting firms’ concerns about higher employment costs and a soft economy.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Anil D’Silva)
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