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FTSE 100 tumbles after Trump's latest tariff threat

FTSE 100 tumbles after Trump's latest tariff threat
FILE POTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville -
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(Reuters) – London’s blue-chip index plunged to its lowest in a month on Friday after U.S. President Donald Trump threatened to hit China with more trade tariffs.

The FTSE 100 index <.FTSE> slumped 1.5% by 0711 GMT and was on course for its worst day in more than two months, while the FTSE 250 midcap index <.FTMC> weakened by 0.9%.

All of the major constituent sectors on both indexes were in the negative territory in early deals.

Asia-focussed bank stocks, including HSBC <HSBA.L>, oil majors Shell <RDSa.L> and BP <BP.L> and miners led losses on the main index after Trump vowed to impose a 10% tariff on $300 billion worth of Chinese imports from Sept. 1.

Industrials Melrose <MRON.L> and Ashtead <AHT.L>, typically more exposed to global trade conditions, slumped 7.6% and 5%, respectively.

Among results-driven moves, Royal Bank of Scotland <RBS.L> dropped 5% as it warned on its targets amid Brexit uncertainties, while British Airways owner IAG <ICAG.L> rose 3% after reporting a better-than-expected profit for the first half of its key summer period.

(Reporting by Muvija M and Shashwat Awasthi in Bengaluru; Editing by Anil D’Silva)

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