The UK’s benchmark FTSE 100 edged lower on Tuesday, reflecting weaker global sentiment as investors weighed fresh tariff uncertainty and concerns over potential disruption from artificial intelligence.
By 1140 GMT, the blue-chip index was down 0.1%, while the more domestically focused FTSE 250 rose 0.07%.
Tariff uncertainty weighs on markets
U.S. President Donald Trump introduced a new 10% tariff on imported goods not covered by exemptions, lower than the previously indicated 15%, after earlier levies were struck down by the Supreme Court.
The UK had negotiated a reciprocal 10% tariff rate under a trade agreement reached with the U.S. last year. Nonetheless, renewed trade tensions dampened investor appetite, echoing declines seen across global markets.
AI disruption fears hit tech
Investor nerves were also rattled by concerns about the rapid evolution of AI and its potential impact on sectors such as software and private equity. On Wall Street, these industries came under pressure overnight following a report outlining broader economic risks from AI-driven disruption.
In London, technology stocks fell 1%. Information and analytics group RELX dropped 1.3%, while London Stock Exchange Group slipped 0.4%.
However, computer hardware firm Raspberry Pi surged 11.7%, with traders viewing it as a potential beneficiary of low-cost AI development projects.
Banks under pressure
The banking sector also retreated, falling 1.2%. Bank of Georgia Group (formerly Lion Finance) and Barclays each declined 1.5%, while Lloyds Banking Group lost 1.9%.
Standard Chartered fell 2% despite reporting higher full-year pretax profit, unveiling a $1.5bn share buyback programme and raising its full-year dividend by 65% year-on-year.
Convatec tops the index
On the earnings front, medical products maker Convatec jumped 10% to lead the FTSE 100 after upgrading its medium-term organic revenue growth target, citing a strengthening product pipeline.
Overall, London equities mirrored the cautious tone in global markets as investors balanced trade policy uncertainty with shifting expectations around AI-driven economic change.
