European stocks fell on Monday as concerns swept through financial markets, days before US President Donald Trump’s tariff plans are due to take effect.
London’s FTSE 100 was down more than 100 points during the lows of the day. At close, it had lost 76.04 points, or 0.88%, to settle at 8,582.81.
The sell-off was more pronounced for other top European indexes. Germany’s Dax fell 1.33%, and France’s Cac 40 tumbled 1.58%.
Experts said fears of an escalating trade war meant there was “nowhere to hide in the stock market” with a raft of global stocks caught up in the panic.
Kathleen Brooks, research director at XTB, said: “There is an air of capitulation in financial markets ahead of the April 2 reciprocal tariff announcement from the US.
“Tariff fears have deepened over the weekend, there has been no let-up from president Trump, who said that no country would be able to avoid his reciprocal tariffs. This dashed any hopes for a last-minute reprieve.
“There is nowhere to hide in the stock market as equities get caught up in the tariff headwinds, which is not helped by the fact that it is the last trading day of first quarter.”
Mr Trump has promised a “Liberation Day” on Wednesday, when a series of tariffs tailored to each of the country’s trading partners will come into effect.
On the FTSE 100, stocks covering a range of industries had notched up losses, including miners and airlines.
New York’s top indexes started the day on a stronger footing after a bruising session on Friday. The S&P 500 was down about 0.5%, while Dow Jones had lifted 0.3% by the time European markets closed.
The pound was weakening against the US dollar, and was down 0.35%, at 1.289, when equity markets closed. Sterling was also down 0.1% against the euro, at 1.1943.
In company news, shares in FTSE 100-listed IAG, which owns British Airways, dropped nearly 7% after rival carrier Virgin Atlantic said it returned to profitability for the first time since 2016.
Virgin Atlantic said 2024 was a “turning point” for the group, as it repaid a large chunk of debt and saw an increase in passenger numbers. IAG shares closed 6.6% lower.
Pets At Home saw its share price tumble by more than a 10th during the day after saying that underlying pre-tax profits would decline this year, thanks to its retail arm coming under pressure from weakness in the UK pet market.
The company, which sells pets and pet products, and offers veterinary and grooming services, also said it was expecting costs to lurch upwards this year, partly because of higher wage costs and taxes. Shares in Pets At Home closed 8.5% lower.
The biggest risers on the FTSE 100 were British American Tobacco, up 58p to 3,182p, Severn Trent, up 35p to 2,531p, Imperial Brands, up 39p to 2,865p, Smith & Nephew, up 14p to 1,085p, and Shell, up 28.5p to 2,825p.
The biggest fallers on the FTSE 100 were IAG, down 18.5p to 260.8p, Entain, down 34.6p to 577.8p, JD Sports, down 4.06p to 67.9p, Anglo American, down 108.5p to 2,145p, and Glencore, down 12.25p to 280.3p.
