London stocks fell for a second consecutive day on Tuesday as US tariff threats continued to rattle investors.
By mid-morning, the FTSE 100 was down 1.2%, the FTSE 250 slipped 1%, and the AIM All-Share lost 0.4%.
European markets followed suit, with Paris’s CAC 40 down 0.9% and Frankfurt’s DAX 40 falling 1.0%.
Lingering uncertainty over US President Donald Trump’s tariff threats on several European nations intensified after comments targeting France. Trump warned he could impose 200% tariffs on French wine and champagne over Paris’s refusal to join his” Board of Peace” initiative for Gaza reconstruction.
Trump is expected to speak at the World Economic Forum in Davos this week.
Economic data offered little comfort. UK unemployment remained unchanged for the three months to November, while regular earnings growth slowed.
On the FTSE 100, Burberry fell 3.3% (LON:BRBY), Spirax lost 3.1% (LON:SPX), SSE (LON:SSE) dropped 2.7%, and Ashtead Group (LON:AHT) declined 2.6%.
To the upside, Informa climbed 2.6%, benefiting from expectations of “strong trading” in the fourth quarter. The firm projected 2025 revenue of at least £4.0 billion, up from £3.55 billion a year prior, and underlying revenue growth of 6.3%.
Adjusted earnings per share are expected to reach at least 55.5p, with a proposed 22p dividend, up 10% from 2024. Informa also launched a £200 million share buyback programme for 2026 following the completion of its £350 million programme in 2025.
GSK fell 1.1% after agreeing to acquire RAPT Therapeutics, a California-based biopharmaceutical company, for $58 per share, valuing the deal at $2.2 billion. The acquisition includes ozureprubart, a long-acting anti-immunoglobulin E monoclonal antibody in phase two B trials for food allergens. The transaction is expected to close in Q1 2026.
On the FTSE 250, Ibstock led losses, down 5.6%. Revenue rose 2% to £372 million, but the company warned that residential construction and RMI markets are likely to remain subdued in the near term. Cost-cutting measures and production adjustments are expected to create a margin headwind in 2026, though cash generation should benefit.
AIM-listed CPPGroup plunged 44% as it flagged the possibility of leaving the public market due to undervaluation, limited liquidity, and high administrative costs. The company said it would fund near-term needs from £5.6 million in cash and disposal proceeds while evaluating strategic options.
US markets were closed on Monday for Martin Luther King Jr Day but reopen later on Tuesday, providing the first glimpse of how US investors will react to the unfolding transatlantic tariff tensions.