Escalation of Us-china spat rocks markets

London’s top -flight followed global markets into the red, dragged down by the fallout from escalating Us-china trade tensions.

The FTSE 100 fell 63.59 p oints to close at 7,207.41 after the Chinese government threatened to retaliate if President Trump follows through on plans to ratchet up tariffs this week.

David Madden, market analyst at CMC Markets UK, said: “Europe is getting hit in the crossfire because when the two largest economies in the world engage in a trade war, it bodes badly for everyone.”

The pound was broadly flat against the dollar at $1.301 at the London market close as uncertainty over cross-party Brexit talks continued. The British currency shed 0.3 per cent against the euro to finish the day at 1.158.

In stocks, Barratt shrugged off Brexit pressures in the property market as it increased its full-year outlook after a strong start to the year.

The UK’S largest housebuilder said total forward sales were up 2.4 per cent to £3.4 billion, pushing shares to the top of the FTSE 100 and gaining 14p to close at 600p.

Supermarket Morrisons slipped after it said “political and economic uncertainty” was continuing to affect consumer confidence, even after an extension to the Brexit deadline. Shares fell 1.9p to 211.7p.

Elsewhere, fashion retailer Superdry finished trading marginally up even as it issued another profit warning on the back of a sales drop in the final quarter.

The clothing company said pre-tax profits will be lower than market expectations. Shares rose 0.8p to 481p.