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Stock prices in London followed Tokyo’s Nikkei 225 into the red on Monday morning after US President Donald Trump on the weekend threatened European countries including the UK with tariffs over his aim for the US to take control of Greenland. The FTSE 100 index opened down 19.45 points, 0.2%, at 10,215.84. The FTSE 250 was down 128.41 points, 0.6%, at 23,182.96, and the AIM All-Share was down 0.41 points, 0.1%, at 804.34. The Cboe UK 100 was down 0.1% at 1,022.21, the Cboe UK 250 was down 0.6% at 20,322.44, and the Cboe Small Companies was 0.2% lower at 17,960.17. In European equities on Monday, the CAC 40 in Paris was down 1.2%, while the DAX 40 in Frankfurt sank 1.1%. Sterling was at $1.3400 on Monday morning, up from $1.3382 at the London equities close on Friday. The euro was higher at $1.1623 from $1.1596. Against the yen, the dollar was lower at JP¥158.01 versus JP¥158.06. US President Donald Trump threatened to impose 25% tariffs on countries that don’t support his plans to take over Greenland, an autonomous territory of Nato ally Denmark. From February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would be subject to a 10% tariff on all goods sent to the US, Trump said in a post on his Truth Social website. ‘On June 1st, 2026, the tariff will be increased to 25%. This tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland,’ he wrote. Trump said countries who opposed him were playing a ‘very dangerous game’ but that he was ‘open to negotiation’. ‘Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,’ Britain, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden warned in a joint statement. NATO Secretary General Mark Rutte said he had spoken to Trump about ‘the security situation in Greenland and the Arctic’ and hoped to talk again at this week’s Davos summit. He did not elaborate on their conversation. Aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used ‘anti-coercion instrument’ against Washington if Trump makes good on his additional tariffs. This measure allows for curbing imports of goods and services into the EU. ‘This week, world leaders will meet in Davos the timing is perfect. The potential implications of Greenland will be felt intensely. Europe could manage the tariff crisis with relative calm, but the security dimension may provoke a different reaction,’ said Swissquote analyst Ipek Ozkardeskaya. ‘First, only a handful of European countries are facing tariffs not all of them. I am not a geopolitical expert, but a clear ’divide and conquer’ dynamic is at play, which could complicate intra-European relations, as the decisions will not have the same impact on every member, and could further weaken the continent.’ Gold was sharply higher at $4,666.00 an ounce early on Monday from $4,594.24 late Friday. The yellow metal hit a new record high of $4,690.75 earlier. The FTSE 100 fared better than European indexes due to its more defensive qualities, as a rise in mining stocks partly offset other losses. Fresnillo led the index and climbed 4.4%, while Endeavour Mining was up 2.1%. In the wake of the tariff news, Burberry fell the most on the FTSE 100, down 2.7%. Other fallers were Spirax Group, Smith & Nephew and Diageo which fell 2.2%, 1.9% and 1.8% respectively. Elsewhere, European carmakers were among stocks that sank amid concerns that the sector would be hit by Trump’s threats. BMW fell 3.3%, while Porsche was down 3.2% and Volkswagen lost 2.7% in Frankfurt. Meanwhile, the average price of UK homes coming to the market for sale in 2026 showed the largest ever increase for the month of January, property sales platform Rightmove reported. The average price rose by 2.8% in January to £368,031 from £358,138 in December. This was not only the largest monthly rise for UK house prices of any January, Rightmove said, but also the biggest jump in any month since June 2015. National average property prices are now 0.5% higher than a year ago, as prices rebounded after late November’s UK government budget. US financial markets are closed on Monday for Martin Luther King Jr Day. In the US on Friday, Wall Street ended down, with the Dow Jones Industrial Average 0.2% lower, while the S&P 500 and the Nasdaq Composite finished down 0.1%. In Asia on Monday, the Nikkei 225 in Tokyo was down 0.7%. In China, the Shanghai Composite was 0.3% higher, while the Hang Seng Index in Hong Kong lost 1.1%. The S&P/ASX 200 in Sydney was 0.3% lower. In London, shares in WH Smith led the FTSE 250 index and jumped 11% after the firm said it has hired former Balfour Beatty CEO Leo Quinn to be executive chair from April 7. The Swindon, England-based travel retailer said Non-Executive Chair Annette Court will step down at the firm’s annual general meeting on February 2. Senior Independent Director Simon Emeny will act as interim non-executive chair until Quinn’s appointment. ‘The board strongly believes that Leo’s record of leadership and significant experience of successfully delivering transformation for large international companies make him the right candidate to deliver the group’s return to stability and long-term growth strategy,’ said Chair Court. Back in August, WH Smith said a financial review identified an overstatement of around £30 million of expected headline trading profit in North America. It tied this to the accelerated recognition of supplier income in its North America division. In December, the UK’s financial watchdog launched an investigation into the company following the accounting error within its US business. The UK Financial Conduct Authority started this investigation following a review by Deloitte in November, which led to Chief Executive Carl Cowling’s resignation. Deloitte’s probe found that the accounting treatment for supplier income adopted by the US division was not consistent with the group’s accounting policy and the requirements of the relevant accounting standards. Shares in WH Smith were down 46% over the last 12 months before today’s rise. Workspace Group shares fell 1.1% after it said Chief Executive Officer Lawrence Hutchings will leave the flexible workspace provider immediately on Monday. Hutchings joined Workspace as CEO in November 2024. The firm hired Office Group co-founder Charlie Green as its new CEO, starting from February 2. As announced in December, Workspace notes Tom Edwards-Moss will join Workspace as CFO designate on February 23, while outgoing CFO Dave Benson will remain until the end of April ‘to ensure a smooth handover’. Workspace said trading over the quarter has been in line with management expectations. It will provide a third quarter business update on Wednesday this week. On the AIM index, shares in Distil sank 14%. The London-based owner of premium alcoholic drinks brands said revenue fell 26% to £173,000 in the third quarter to the end of December from £233,000 in the prior year. The firm said volumes into distributors decreased 39%, while volumes at consumer level increased 36%. ‘The increased sales at consumer level is not reflected in Distil’s reported sales outturn in Q3 due to existing stock holdings within the trade,’ noted Executive Chair Don Goulding. ‘Inventory acquired by distributors to cover the Christmas trading period were predominantly built in Q2, and there is overall pressure across the supply chain to work with more efficient stock levels, with retailers running stock cover at a lower level.’ Distil said global market conditions continue to be tough across the beverage alcohol industry, including spirits, as consumer confidence remains fragile. It added that the medium-term outlook for the industry ‘continues to be challenging’. Brent oil was trading lower at $63.47 a barrel from $64.48. Still to come on Monday’s economic calendar, are inflation figures from the eurozone and Canada. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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