FTSE tumbles into red amid global woes

The FTSE 100 crashed into the red as growing trade tensions and a weaker economic outlook weighed on markets around the globe.

The blue-chip index shed 120.17 points to close at 7,260.47, marking a 1.63 per cent decline.

European markets were down across the board after the EU slashed growth forecasts for Germany for the second time this year.

“A couple of unpleasant revisions to the EU’S economic forecasts only added to Tuesday’s sense of unease, the markets crumbling under the renewed trade tensions,” said Connor Campbell, financial analyst at Spreadex.

Global stocks were down as sentiment remained fragile.

Fiona Cincotta, senior market analyst at City Index, said: “Trump’s threats to escalate the trade war with China is ensuring that risk-aversion dominates and has put an abrupt end to the recent rally which saw the Nasdaq and the S&P reach fresh record highs.”

Meanwhile sterling was weaker, as cross-party Brexit talks between the government and opposition leaders reached “crunch time”, according to shadow Brexit secretary Keir Starmer.

The currency slipped 0.19 per cent on the euro to €1.116 and was down 0.32 per cent versus the dollar at £1.305.

Shares in cash-strapped travel firm Thomas Cook jumped 1.33p to 23.01p after Lufthansa confirmed it has made a bid for Condor, the UK group’s German airline arm.

Shares in Domino’s Pizza dipped 3.8p to 257p after it warned that it saw a “disappointing” performance in its global business, with “weak” system sales across all its overseas markets.