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London's stock market faced a downturn on Monday following a controversial announcement by U.S. President Donald Trump, who threatened tariffs on Britain and seven other European nations unless the U.S. was granted rights to purchase Greenland. The statement sent ripples through global markets, unsettling investors and raising doubts about recent trade agreements. The FTSE 100, a key index for blue-chip stocks, fell by 0.5%, while the mid-cap FTSE 250, which tracks domestic companies, plunged 0.9%—its steepest one-day drop since late November. Over the weekend, Trump revealed plans to impose an additional 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the UK starting February 1, with the potential for the levy to rise to 25% by June 1 if no deal is reached concerning Greenland. The tariff threats injected fresh volatility into global markets, with major European nations condemning the move as "economic blackmail". France proposed a series of untested countermeasures, while British Prime Minister Keir Starmer called for calm negotiations to ease the growing tensions. These developments overshadowed earlier trade agreements the U.S. had reached with Britain in May and the European Union in July, both of which have already drawn criticism for favouring Washington.

Losses were widespread across London’s stock market. Banking and healthcare stocks were hit particularly hard, while luxury brands also suffered. Burberry’s shares dropped 2.8%, and Watches of Switzerland Group saw a 1.5% decline. Conversely, precious metal miners experienced a 2.5% surge as investors sought refuge in gold and silver, both of which reached record highs amid the uncertainty. Aerospace and defence stocks managed a modest 0.4% gain. In a rare bright spot, WH Smith shares soared by 9% after announcing a leadership overhaul. The travel retailer appointed former Balfour Beatty CEO Leo Quinn as executive chair, replacing Annette Court, in an effort to revitalise the business and restore investor confidence. While some sectors showed resilience, Monday’s events highlighted the vulnerability of investor sentiment amid geopolitical tensions and trade uncertainties. Looking ahead, investors will closely monitor how these issues evolve in the coming days. The UK faces a busy economic calendar this week, with key data releases including the labour market report on Tuesday, inflation figures on Wednesday, public finances on Thursday, and retail sales on Friday. 

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bullish 
• Weekly VWAP Bullish
• Above 10150 Target 10300
• Below 10070 Target 9950

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