UK equities traded lower on Monday afternoon, though outperforming European peers, as markets slid amid renewed geopolitical tensions after U.S. President Donald Trump warned of possible sanctions over Greenland, pressuring luxury and beverage stocks while defence shares advanced.
As of 1155 GMT, the blue-chip index FTSE 100 fell 0.5% and the British GBP/USD rose 0.2% against the dollar to 1.34.
DAX index in Germany fell about 1.3%, the CAC 40 in France dropped 1.6%.
Stay ahead of the FTSE — premium UK stock insights and real-time market movers with InvestingPro UK round up European luxury and beverage stocks fall on Trump tariff threats
European luxury and beverage stocks dropped Monday as U.S. President Donald Trump announced plans for new import tariffs on European Union and United Kingdom products, reigniting trade tensions across the Atlantic.
Luxury goods companies were among the hardest hit, with LVMH Moet Hennessy Louis Vuitton SE (EPA:LVMH) shares falling about 4% and Hermes International SCA (EPA:HRMS) dropping roughly 3.1%. Kering SA (EPA:PRTP) declined close to 2.8%, while eyewear manufacturer EssilorLuxottica SA (EPA:ESLX) was down around 1%. Swiss luxury watchmakers also faced pressure, with Compagnie Financiere Richemont SA (SIX:CFR) and Swatch Group AG (SIX:UHR) trading between 3.7% and 2% lower. Italian luxury brands Moncler SpA (BIT:MONC) and Brunello Cucinelli (BIT:BCU) fell between 2.1% and 2.5%, while Ferrari shares slipped about 2.3%.
In the beverage sector, spirits makers with significant U.S. market exposure saw their stocks decline. Shares of Diageo PLC (LON:DGE), Pernod Ricard SA (EPA:PERP), Remy Cointreau (EPA:RCOP), and Davide Campari Milano SpA (BIT:CPRI) dropped between 1% and 3.5%.
British luxury brand Burberry Group PLC (LON:BRBY) was down around 2.6% in London trading, while Danish jewelry maker Pandora A/S (CSE:PNDORA) fell roughly 2.6%. The luxury sector, which depends heavily on discretionary spending and global trade flows, is particularly vulnerable to policy uncertainty and trade tensions. Investors are concerned that higher U.S. duties could hurt demand in one of the sector’s most important markets.
Meanwhile, European defense stocks moved higher as markets assessed Trump’s tariff threats, which reportedly included demands that the U.S. be allowed to purchase Greenland. Shares of Leonardo SpA (BIT:LDOF) in Italy, RENK Group AG (ETR:R3NK) and Rheinmetall AG (ETR:RHMG) in Germany, BAE Systems PLC (LON:BAES) in the United Kingdom, and Thales (EPA:TCFP) in France were all higher in mid-morning trading.
WH Smith PLC (LON:SMWH) shares surged 10.2% on Monday after the global travel retailer announced Leo Quinn would become Executive Chairman on April 7, 2026. Quinn brings over 20 years of experience as CEO of UK publicly quoted companies, most recently serving as Group Chief Executive of Balfour Beatty plc.
In other market moves, Ashtead Technology Holdings PLC (LON:ATAS) stock jumped 11.8% on Monday. The subsea equipment and services provider revealed its full-year profit would exceed market expectations, despite revenue coming in slightly below consensus estimates. Ashtead Technology’s fiscal year 2025 revenue is expected to reach approximately £203 million, representing a 21% year-over-year increase with 3% organic growth. This falls marginally short of the £205.8 million consensus forecast.
Meanwhile, M&C Saatchi (LON:SAA) shares rose more than 6% on Monday after the advertising firm met its full-year profit targets through cost-cutting measures, which offset a 7% decline in annual revenue. The London-based company posted operating profit of £26 million for the full year ended 2025, having achieved £8 million in cost savings during the second half of the year.
Marshalls PLC (LON:MSLH) reported full-year 2025 adjusted profit before tax in line with market expectations at £43.6 million, with group revenue reaching £632 million despite uncertain market conditions, according to a trading statement released Monday.
The UK building products manufacturer’s profit matched the company-compiled market consensus, with analyst estimates ranging between £41 million and £45 million. Revenue performance aligned with trends previously outlined in the company’s November trading update.
Meanwhile, Dowlais Group Plc (LON:DWL), the automotive-focused specialist engineering group, reported that its 2025 performance exceeded previous guidance based on unaudited financial accounts. The company expects adjusted revenue for the year ending December 31, 2025, to be approximately £5 billion, representing a 3.1% year-on-year growth at constant currency. Both the Automotive and Powder Metallurgy segments contributed to this growth, though translational foreign exchange headwinds of about £90 million are expected to reduce reported adjusted revenue growth to approximately 1.3%.
Additionally, Workspace Group PLC (LON:WKP), London’s leading owner and operator of flexible workspace, announced Monday that Lawrence Hutchings is stepping down as Chief Executive Officer and Board Director, effective immediately. Charlie Green will take over as the new CEO on February 2. Green brings experience as the Co-Founder of The Office Group (now Fora), which he developed into a flexible workspace business with more than 70 locations across the UK.
Big Technologies PLC (LON:BIGB) stock surged 16.05% after the electronic monitoring solutions provider announced it has reached a full and final settlement in the Buddi litigation case. The company will pay a total of £38.5 million to settle claims from former Buddi Limited shareholders who alleged they were wrongly forced to sell their shares during Big Technologies’ 2018 acquisition of Buddi.
