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Donald Trump has maintained pressure on European allies over his demand to seize control of Greenland as markets fell in response to his tariff threats.
The US president launched an attack on the UK decision to cede sovereignty of the Chagos Islands, revealed messages from European leaders and posted images showing Greenland as US territory.
Mr Trump has threatened to hit the UK and other European allies with 10% tariffs from February 1 unless they agree to his purchase of Greenland, a semi-autonomous Danish territory and he has refused to rule out using military force to seize the island.
In London, the FTSE 100 Index dropped more than 120 points soon after opening on Tuesday, down 1.3% at 10068.4, following a 0.4% fall on Monday.