London markets opened in the red on Tuesday as traders returned from the long bank holiday weekend in a cautious mood. The FTSE 100 slipped 0.7% to 9,258.63, while the FTSE 250 fell 0.6% to 21,939.01. The AIM All-Share managed to edge 0.2% higher at 766.20.
Investors are still weighing last week’s dovish hints from Federal Reserve Chair Jerome Powell and the political tremor from President Donald Trump’s decision to dismiss Fed Governor Lisa Cook.
On the FTSE 100, British American Tobacco dropped 1.7% after announcing the sudden resignation of Chief Financial Officer Soraya Benchikh. She will remain until year-end to oversee the transition, with Javed Iqbal stepping back in as interim CFO until a permanent successor is found. Benchikh only took up the role in May 2024.
In smaller caps, Old Mutual jumped 6.8% after guiding for adjusted HEPS growth of between 21% and 41%, helped by stronger investment returns in South Africa and Malawi. This offset weaker headline and basic earnings.
Hydrogen firm ITM Power rose 3.5% after its Hydropulse unit agreed a strategic partnership with renewable energy developer ABO Energy to roll out decentralised hydrogen production sites for industrial users.
Elsewhere, the mood across global markets remained sour. The CAC 40 fell 2.2% in Paris, the DAX 40 slipped 0.9% in Frankfurt and the Nikkei 225 lost 1% in Tokyo. Wall Street ended lower on Monday, with the Dow Jones down 0.8%, the S&P 500 off 0.4% and the Nasdaq dipping 0.2%.