British Stocks Decline as Global Growth Concerns and U.S. Tariffs Weigh on Markets

British shares started the week on a sour note, with markets rattled by ongoing worries about global economic growth and the uncertainty surrounding U.S. tariffs. The blue-chip FTSE 100 dropped 0.5% by 10:50 GMT on Monday, poised for its fifth consecutive session of losses if the downturn holds.

Investors remained on edge following U.S. President Donald Trump’s refusal to predict whether the U.S. economy could slide into recession due to tariffs imposed on Mexico, Canada, and China over fentanyl concerns. The potential impact of these tariffs has added to market anxiety, fueling fears of a prolonged global trade war.

“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.”

Among the worst-hit sectors were banking and pharmaceuticals, with banking stocks declining 2.2% and pharmaceutical stocks slipping 1.4%, leading sectoral losses. The midcap FTSE 250 also faced pressure, shedding 0.2%.

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Clarkson, a shipping services company, saw its shares plunge 17.5%, dragging down the FTSE 250, after warning that geopolitical uncertainties could impact its near-term outlook.

Despite the broader downturn, some stocks managed to buck the trend. British healthcare real estate investment trust Assura surged 14.2% after revealing it was considering a £1.61 billion ($2.1 billion) takeover offer from U.S. private equity firms KKR and Stonepeak Partners.

Deliveroo also saw a modest boost, rising 1.9%, after announcing plans to exit its Hong Kong operations and sell certain assets to Delivery Hero’s foodpanda unit.

Adding to economic concerns, a recent survey indicated that Britain’s job market slowed in February, with hiring activity softening and the smallest increase in starting salaries in four years. The data reflects growing caution among firms, driven by rising employment costs and a fragile economy.