The FTSE 100 (^FTSE) and European stocks fell on Monday, with yet more uncertainty on deck, as president Donald Trump laid out new potential tariffs on countries supporting Greenland over the weekend.

EU capitals have entered discussions to implement tariffs of up to €93bn ($107.71bn) on American products after President Trump posted his plan to levy new tariffs on Europe on Saturday. Trump said the US would implement 10% tariffs on eight European countries he says are getting in the way of a US purchase of Greenland.

The tariffs would begin on 1 February and apply to “any and all goods sent to” the US. The levies on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would be raised to 25% on 1 June if no agreement is in place.

“China and Russia want Greenland, and there is not a thing that Denmark can do about it. They currently have two dogsleds as protection, one added recently,” Trump wrote. “Only the United States of America, under PRESIDENT DONALD J. TRUMP, can play in this game, and very successfully, at that!”

Prime minister Keir Starmer gave a speech at Downing Street this morning laying out the UK’s position on the new levies. He said a trade war is “not in our interests”. We will work with our allies and keep dialogue open, he added. “We will defend international law.”

Denmark, Sweden, France, Germany, the Netherlands and Finland, Britain and Norway — are already subject to US tariffs between 10% and 15%.

Tariff-sensitive stocks, such as carmakers and fashion fell.

The dollar index (DX-Y.NYB) also fell about 0.4%, while precious metals headed to new record highs.

The FTSE 100 (^FTSE) fell 0.3% by the closing bell. Burberry (BRBY.L) and Diploma (DPLM.L) were among the top fallers in the index.

The DAX (^GDAXI) in Germany lost 1.3%. Adidas (ADS.DE) and Siemens (SIE.F) dragged the index lower, among other stocks.

The CAC 40 (^FCHI) in Paris declined 1.9%. Luxury retailer Kering (KER.PA) sat at the bottom of the index, down more than 3.5%.

The pan-European STOXX 600 (^STOXX) dipped 1.2%.

The pound rose 0.4% against the dollar (GBPUSD=X), to just above the $1.34 mark.

US markets are closed on Monday for Martin Luther King day.

Futures on the S&P 500 (ES=F) fell 0.9%, while those on the Dow Jones Industrial Average (YM=F) were down 0.7%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank 1.2%.

XETRA – Delayed Quote • USD

24,958.05 -339.08 (-1.34%)

At close: 17:25:12 CET

^GDAXI ^FTSE ^FCHI

LIVE 16 updates

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Beazley takeover attempt sends shares to records

Zurich Insurance has unveiled a proposal to buy London-listed rival Beazley in a deal worth around £7.7bn.

The Swiss insurer said it had tabled a potential offer of £12.80 a share, up from an earlier and previously undisclosed approach for £12.30 a share on January 4, which was rejected.

Shares in Beazley soared to an all-time high after the proposal was made public, with the stock surging by 42% in afternoon trading on Monday, giving the FTSE 100 specialist insurer a market capitalisation of nearly £7bn.

Zurich said its latest approach marked a 56% premium on the value of Beazley shares on January 16, before the proposal was made public.

Beazley said it had “not yet had the chance to consider” the improved approach and would update shareholders “in due course”.

It confirmed the previous proposal was rebuffed by the board “on the basis that it significantly undervalued the company”.

Zurich believes its proposed offer “provides Beazley shareholders immediate and certain cash value for their investment at a level that exceeds what Beazley could achieve over a reasonable timeframe through the execution of its strategy”.

Gold heads to new record

Chris Beauchamp, chief market analyst at investing and trading platform IG, said:

UK third in IMF’s growth outlook

Pedro Goncalves writes:

The UK is forecast to be the third fastest growing economy in the G7 next year, behind only the US and Canada, according to the International Monetary Fund (IMF), as global growth remains resilient despite trade tensions.

In its latest World Economic Outlook, the IMF said headwinds from global trade frictions in 2025 had been offset by a surge in technology investment, including in AI, particularly in the US and Europe.

The fund said UK economic growth was expected to outpace Japan, Italy and France and to match Germany. It left its forecasts for the UK unchanged for 2026 and 2027, projecting growth of 1.3% this year and 1.5% next year. However, it raised its forecast for 2025 by 0.1 percentage point to 1.4%.

Global growth is projected at 3.3% in 2026 and 3.2% in 2027, broadly in line with an estimated 3.3% expansion in 2025, as investment in AI helped the world economy absorb the impact of trade tensions.

Read more on Yahoo Finance UK

UK rental prices fall

Vicky McKeever writes:

Newly agreed rents across Britain dipped by 0.7% in 2025 to an average £1,371 per month, according to Hamptons latest letting index.

This marked the first time rents fell over a full calendar year since Hamptons’ records began in 2011.

The estate agent said that by the end of 2025, five of 11 regions in Great Britain recorded falling rents, compared with none at the end of 2024.

London recorded the largest falls in newly agreed rents, according to the research, published on Monday. Hamptons’ index showed newly agreed rents in London fell 2.7%, or by £63, over the course of 2025 to an average £2,294, taking rents back to levels in June 2023.

By December, Hamptons said that rents were also falling in the South East, East Midlands, Yorkshire & Humber and in Wales.

Meanwhile, the East of England, South West and Scotland saw growth below 1% in 2025. Hamptons said that their current trajectory suggested that these regions could also fall into negative territory in early 2026.

Read more on Yahoo Finance UK

Here’s the WH Smith chart
WH Smith stock pops

Dan Coatsworth, head of markets at AJ Bell, said:

EU inflation falls to 2.3%, and 1.9% in the euro area
‘Trade war not in our interests’

When asked about whether the UK will inflict retaliatory tariffs, Starmer says he wants to avoid a trade war at all costs. It is “not in our interests” he said.

“It doesn’t mean we pretend we don’t have differences. Differences of opinion on tariffs in a situation like this.”

“We will seek a solution that’s in our national interests.”

Starmer defends international law

Taking a pop at Trump’s communication style, Starmer said a social media post or grandstanding is “not a substitute for hard work.”

We will work with our allies and keep dialogue open, he added. We will defend international law.

Starmer sets out firm stance on Greenland’s independence

Speaking at Downing Street, prime minister Keir Starmer said:

Reeves cancels LSE appearance

Chancellor Rachel Reeves has made moves to switch her diary around today so she can attend the press conference prime minister Keir Starmer will hold on Greenland this morning.

She had been due to attend the London Stock Exchange for a celebration of the “new golden age” of the City.

The event was touting new record highs for the FTSE and a new listings regime which will make it easier for companies to raise money or IPO. It is slightly awkward timing, with a dip for the index related to new tariff jitters.

UK property kicks off year with price surge

The property market kicked off the year with a jump in prices, according to a new analysis, with the average house costing £9,893 more than it did in December — a 2.8% increase.

This is the largest price increase seen in the month of January, and the largest of any month since June 2015, housing platform Rightmove (RMV.L) said.

National average property prices are 0.5% ahead of this time last year as prices rebounded after the budget, the platform’s research showed.

The so-called “Boxing day bounce” also spurred on the market. An early snapshot of activity shows that in the two weeks post-Christmas, buyer demand rose by 57% compared to the two weeks before Christmas, while the number of newly-listed homes for sale jumped by 81%.

January’s recovery brings average asking prices close to where they were in August 2025.

Read more on Yahoo Finance UK

Good morning!

Hello from London. Lucy Harley-McKeown here. Gearing up to bring you the latest market news.

On the slate this morning is EU consumer price inflation (CPI) data.

We’ll also be watching for news coming out of the World Economic Forum at Davos — chancellor Rachel Reeves is there this week among other world leaders.

Markets are closed in the US today for Martin Luther King day.