London markets look set for a subdued open on Tuesday as tariff uncertainty continues to unsettle investors at the start of the week.
Futures indicate the FTSE 100 will open around 11 points lower, down 0.1% at 10,673. The index was effectively flat on Monday, slipping just 0.20 points to close at 10,684.74.
Currency and Bond Moves
Sterling edged slightly lower to $1.3490 from $1.3505 late Monday. The euro also weakened to $1.1780 from $1.1801, while the dollar strengthened against the yen, rising to ¥155.05 from ¥154.33.
In the bond market, the 10-year US Treasury yield held steady at 4.04%. The 30-year yield inched higher to 4.71% from 4.69%.
Wall Street Sells Off
US equities fell sharply on Monday. The Dow Jones Industrial Average dropped 1.7%, the S&P 500 declined 1.0%, and the Nasdaq Composite fell 1.1%.
Payment and delivery stocks came under heavy pressure as the so-called AI fear trade spread beyond the technology sector.
IBM shares plunged 13% after Anthropic, developer of the AI chatbot Claude, said its model could help modernise COBOL systems. American Express slumped more than 7%, while Mastercard and Visa each fell between 4% and 5%. In the delivery space, DoorDash dropped around 6% and Uber declined by more than 4%, as investors reassessed valuations across growth-oriented and transaction-linked businesses.
Mixed Trading in Asia
Asian markets were mixed on Tuesday. Shanghai reopened for the first time since February 13, with the Composite index trading 0.9% higher. Hong Kong’s Hang Seng fell 2.0%, while Japan’s Nikkei 225 gained 0.7% after reopening from a public holiday. Australia’s S&P/ASX 200 ended the session flat.
Commodities and What’s Ahead
Gold eased to $5,171.12 an ounce early Tuesday from $5,216.70 late Monday.
On the economic calendar, investors will be watching US consumer confidence data, the Richmond Fed manufacturing index and the S&P/Case-Shiller home price index.
In the UK, full-year results are due from speciality chemicals group Croda and student accommodation provider Unite.
