A mixed performance by the FTSE 100 index today reflected ongoing tariffs uncertainty and AI disruption fears.
The FTSE 100 index opened slightly lower after Wall Street benchmarks last night fell by more than 1%.
Standard Chartered provided the main corporate focus after a mixed set of results was offset by robust guidance.
FTSE 100 Live Tuesday
- New Trump tariffs come into force
- Standard Chartered dividend surges
- Brent Crude at 7-month high
Market update: Banks fall in weaker FTSE 100, THG rises after CEO purchase
10:06 , Graeme EvansA downbeat performance by the FTSE 100 index today reflected jitters over trade tariffs and the potential impact of AI across a broad range of industries.
London’s top flight followed Monday’s resilient showing by drifting 26.45 points to 10,658.29, with the performance influenced by a late sell-off on Wall Street.
IBM became the latest casualty of the AI scare trade as shares last night closed 13% lower in its worst performance for 25 years.
XTB research director Kathleen Brooks said: “IBM is now the most sold software stock on the S&P 500, following large declines for Microsoft, Amazon and Tesla.
“These companies are still generating billions of dollars in revenues, and the new AI tools have no history of sales revenues.
“While AI tools are disruptive for the global economy, we have no idea yet whether they will replace traditional software firms, who have sales and marketing teams behind them that generate the cash flow.”
In London, the AI disruption fears today left Relx and Rightmove shares down by another 2%.
The attention is also on President Trump’s State of the Union address after he threatened at the weekend to hike global trade tariffs to 15% from the 10% that came into force today.
Banking stocks were among those under pressure in London as Barclays fell 2% or 9.75p to 453.25p, Lloyds Banking Group dropped 1.95p to 101.85p and NatWest declined 9.2p to 601.2p.
Standard Chartered failed to benefit from strong guidance and a 65% dividend hike in today’s annual results as shares surrendered initial gains to stand 24.5p cheaper at 1791p.
Rentokil Initial shares topped the fallers board with a decline of 3% or 12.5p to 446.8p after Deutsche Bank downgraded its recommendation to Hold.
Convatec results meant its shares topped the FTSE 100 index, up 7% or 16.8p to 243.8p. The driving force concerned the medical devices firm’s upgraded medium-term organic revenues growth target of 6-8%, up from 5%-7% previously.
It said: “This acceleration follows successful implementation of our strategy and will be driven by our rich innovation pipeline.”
Meanwhile, the full-year figures of Croda International helped shares in the East Yorkshire-based specialty chemicals firm to lift 4% or 123p to 3108p.
In the FTSE 250 index, THG shares rose 1.9p to 36.6p after CEO and founder Matt Moulding increased his stake in the beauty and nutrition e-commerce company to 25.4%. This followed the purchase of shares worth £8.5 million.
Trump's new 10% trade tariffs come into force
09:31 , Graeme EvansDonald Trump’s new trade tariffs have come into effect at 10%, lower than the 15% rate he threatened over the weekend.
The US president signed an executive order to impose the new levies after the Supreme Court overturned his previous import taxes policy in a ruling on Friday.
The 10% levy has been imposed for 150 days, until July 24, under section 122 of the Trade Act of 1974, which does not need approval from Congress.
The British Chambers of Commerce (BCC) said that while firms will be relieved, there are fears the higher 15% tariff rate could still be imposed at any time.
FTSE 100 lower, Rentokil Initial and banks under pressure
08:26 , Graeme EvansThe FTSE 100 index has fallen 23.24 points to 10,661.50, with banking stocks among those under pressure.
Barclays fell 2% or 8.85p to 454.15p, Lloyds Banking Group dropped 1.8p to 102p and NatWest declined 9.6p to 600.8p.
Standard Chartered, which posted results earlier today, surrendered initial gains to stand 18p cheaper at 1797.5p.
Rentokil Initial shares topped the fallers board, down 2% or 10.3p to 449p after Deutsche Bank downgraded its recommendation to Hold.
Medical devices firm Convatec led the FTSE 100 index following the release of annual results, with shares up 11% or 25p to 252p after the company upgraded its medium-term organic growth target to 6-8%.
The full-year figures of Croda International helped shares in the Yorkshire-based specialty chemicals firm to lift 4% or 129p to 3114p.
Standard Chartered guidance pleases after mixed results
07:54 , Graeme EvansStandard Chartered’s Hong Kong-listed shares have risen more than 4% after the bank’s guidance in annual results offset a slightly soft headline performance.
Fourth quarter profit of $1.24 billion came in below City expectations of $1.32 billion, but the return on tangible equity of 14.7% comfortably beat forecasts.
Hargreaves Lansdown analyst Matt Britzman said the guidance for 2026 implied a 6% upgrade to the City consensus.
He added: “After years of reshaping the business, the bank is in the best condition it has been for some time, with that progress increasingly showing up in the numbers and helping drive a 50% share price gain over the past year.
“The growing foothold in affluent banking across Asia, Africa and the Middle East remains a clear long‑term opportunity.
“There is still work to do on costs, but with the “Fit for Growth” programme entering its final year, further progress should be coming, and the valuation doesn’t look too demanding when stacked up against its Asian peers.”
Standard Chartered dividend up 65%, income guidance at low end
07:16 , Graeme EvansFTSE 100-listed banking group Standard Chartered today lifted its annual dividend by 65% and said it plans to buy back another $1.5 billion of its shares.
The dividend total of $1.38 billion or 61 US cents per share includes the distribution of $1.1 billion or 49 cents per share on 14 May.
Chief executive Bill Winters said 2025 was “another year of strong momentum” for the Asia-focused banking group.
He highlighted an underlying return on tangible equity of 14.7%, which exceeds the bank’s three-year plan a full year early.
Winters added: “We have made a good start to the year and continue to benefit from a supportive business environment.
“We are seeing robust growth in our larger markets, and structural shifts in global trade and investment play to our distinctive strengths serving our clients' cross-border and affluent banking needs.”
Underlying profit before tax of $7.9 billion for 2025 rose by 18% on a year earlier, with the figure for the fourth quarter up 19% to $1.2 billion.
The bank expects operating income growth in 2026 to be around the bottom end of its 5-7% year-on-year growth range at constant currency. However, this came in ahead of the City consensus.
FTSE 100 seen slightly lower, Brent crude at seven month high
07:00 , Graeme EvansUS markets last night finished sharply lower amid ongoing tariffs confusion and the selling of software stocks on fears over AI disruption.
The decline also reflected jitters ahead of Nvidia quarterly results, which are due for release after Wednesday's closing bell.
The Dow Jones Industrial Average fell 1.7%, the S&P 500 index reversed 1% and the tech-focused Nasdaq Composite lost 1.1%.
The FTSE 100 index closed down 2.15 points at 10,684.74 whereas the FTSE 250 slumped 0.9% and the Dax in Frankfurt lost more than 1%.
London’s top flight is set to fall by a handful of points at today’s opening bell, according to IG futures trading. US markets are seen opening slightly higher.
Gold is 0.9% lower at $5180 an ounce, while the price of copper has rallied 2% and Brent crude by 0.6% to a seven-month high of $71.90 a barrel.
