FTSE 100 sinks to six

Global markets were rattled by trade tensions on Tuesday after Donald Trump said that he saw “no deadline” to agree a truce with China and threatened punitive tariffs on economies in Europe and South America.

The US president’s comments cast significant doubt on the likelihood of a phase-one deal being agreed with China in the coming weeks after he said at a NATO summit in London that he would be willing to wait another year before striking an accord.

The announcement shocked European stock markets, sending the FTSE 100 to its biggest one-day slump in two months. The index plunged 1.8pc or 127.2 points to fall below 7,200. 

These were some of the day’s biggest stories:

• France says EU would be ready to retaliate if US introduces sanctions  
• UK construction activity shows slight improvement in November 
• Hedge funds drop opposition to Inmarsat takeover
• Fear and uncertainty in South Wales as steel industry teeters on the brink
• Think Tank: Mark Carney clocks up dizzying number of air miles ​