London markets opened lower on Tuesday, with the FTSE 100 down 1% at 9,573 and the FTSE 250 falling 238 points to 21,449. The AIM All-Share was down 1% at 736.
The decline followed sharp losses across Asia, where Tokyo’s Nikkei fell 3.2%, Hong Kong’s Hang Seng dropped 1.7% and Shanghai’s Composite lost 0.8%. Wall Street added to the pressure, with the Dow down 1.2%, the S&P 500 down 0.9%, and the Nasdaq slipping 0.8% overnight.
Investor focus has shifted from AI-driven optimism to companies that can demonstrate consistent earnings growth. This week, attention is on the delayed US jobs report and Nvidia’s earnings, both of which have the potential to move markets significantly.
In London, defensive sectors saw modest gains. AstraZeneca rose 1.2%, Unilever added 0.4%, and Imperial Brands climbed 3.1% after reporting pretax profit of £3.13 billion, up 3.3% year-on-year, alongside a 4.5% increase in its total dividend to 160.32p.
ICG was the top performer on the FTSE 100, up 7.3% after announcing a partnership with Amundi, which will acquire a 9.9% stake. The asset manager reported a 14% rise in assets under management to $124.3 billion, supported by strong fundraising and positive market movements.
Gold miners were among the weaker performers, with Fresnillo down 5.6% as prices fell below $4,000 overnight. Crest Nicholson dropped 11%, warning that annual profit could fall at the lower end of guidance due to a subdued housing market and uncertainty ahead of the UK budget.