UK stocks have continued to sink as fears of a recession escalated after China retaliated to US Donald Trump's announcement of extensive tariffs. The FTSE 100 plummeted by 3.8% to its lowest point since December of the previous year, marking its most severe weekly drop since February 2022. The midcap index also slid by 4%, setting it up for its worst weekly fall since March 2020 when the Covid pandemic began.

China, now facing a total of 54% tariffs on exports to the US, announced on Friday that it would impose an additional 34% tariffs on all US imports from April 10, according to its finance ministry. In the US president's tariff announcement on Wednesday, Britain was subject to the lowest import duty rate of 10%.

Bank stocks suffered a second day of losses as concerns about tariffs fuelled anxieties over growth in the world's largest economy.

Barclays led the sector's losses on the blue-chip index with a 10% drop, followed by HSBC Holdings, Lloyds Banking Group, and Standard Chartered. The UK's banking sector index tumbled by 8% to a three-month low.

The mining companies' index slumped 6.3% as London copper experienced its largest weekly decline in nearly five months due to concerns over tariffs.

In contrast, the utilities sector - often traded as a bond proxy - saw a more than 1% increase, reaching a six-month high.