Tariff fears drag FTSE 100 to more than one-month low

(Reuters) -The British benchmark index fell to a near five-week low on Monday, tracking a global equity selloff as worries about economic growth and uncertainties around U.S. tariffs continued to keep investors on edge.

The blue-chip FTSE 100 fell 0.9%, its fifth straight session of declines, and closed at its lowest since February 4.

The midcap FTSE 250 lost 1.3%, notching its lowest close since January.

Investors remained concerned about an escalating global trade war, after U.S. President Donald Trump declined to predict whether the world’s largest 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 (LON:HRGV) 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."

Global equities fell, with the tech-heavy Nasdaq dropping to a near six-month low, on fears that a tit-for-tat tariff war could spark a slowdown in the world’s largest economy.[MKTS/GLOB]

Defence stocks, which have benefited from higher defence spending prospects, continued to give up their gains to fall about 4.5% and lead sector declines.

Clarkson slumped 20.3%, after the shipping services company flagged the impact of geopolitical uncertainty on its near-term outlook.

Assura jumped 14.3% 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.

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Shares of Deliveroo (OTC:DROOF) rose 0.8% 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.

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