FTSE 100 Slides on Trump Tariffs, Pharma Losses

Global stock markets, including the FTSE 100, dropped sharply after President Trump announced new tariffs featuring a 10% global minimum and even higher duties for trade-surplus countries, notably impacting Switzerland and Canada. Germany’s DAX and France’s CAC 40 both fell over 1.6% amid concerns about the EU's economic exposure and uncertainty over a US-China trade deal. The FTSE 100's decline was exacerbated by steep losses in pharmaceutical stocks such as AstraZeneca and GlaxoSmithKline, following Trump's push for US drug price cuts to international levels and threats of additional sector-specific levies. Intertek was the index’s worst performer, while Melrose and Pearson saw gains on strong earnings. HSBC's large writedowns and mixed European corporate earnings contributed to a cautious market tone. Investors are also closely watching upcoming US Federal Reserve rate decisions and key US labor market data for further direction.