Trump tweets and tariffs see Footsie suffer

Market report

London stocks shared the gloomy mood of global markets after US president Donald Trump slapped tariffs on Mexican imports in a bid to put pressure on the country over immigration.

The FTSE 100 was in the red, dropping 56.45 points to 7,161.71.

Trump tweeted that Mexico had “taken advantage of the United States for decades” and claimed companies making products across the border would move back to the US to avoid the tariffs.

Fiona Cincotta, senior market analyst at City Index, said: “The markets are finally waking up and smelling the bacon – Trump’s trade war is spiralling out of control. There is a level of unpredictability which the markets strongly dislike. With each new threat the possibility of a quick resolution drifts further away.”

The pound was relatively unmoved, inching up 0.13 per cent on the dollar to $ 1.263 and dropping 0.06 per cent on the euro to € 1.132.

In company news, Legal & General said it will no longer offer household policies after bosses sold its home insurance business to German rival Allianz in a deal worth £ 242 million. Shares were down 3.4p to 256.6p.

Wizz Air has said it will have more airline seats available to passengers travelling from Luton Airport this summer than any other airline. The news comes as the budget airline saw passenger numbers jump 16.7 per cent in the year to 31 March. Shares dipped 74p to 3,134p.

Meanwhile the pension regulator has told Sir Philip Green to top up his contribution to his retail business Arcadia’s pension fund, ahead of a vote on the company’s restructuring plans.