The FTSE 100 fell over 0.5% on Tuesday, reversing Monday’s 0.3% gain as rising geopolitical tensions weighed on sentiment. Investors grew cautious after President Trump urged residents to evacuate Tehran, stoking fears of deeper conflict between Israel and Iran. Trump also denied that his early exit from the G7 summit was related to ceasefire efforts.
On the trade front, Trump and UK Prime Minister Starmer agreed on tariff reductions for UK car exports and certain US farm goods, but key steel tariff relief was delayed. In corporate updates, Ashtead posted full-year results in line with expectations but cut its dividend due to weaker US commercial construction. It confirmed plans to shift its primary listing to the US in 2025. Informa reaffirmed 2025 growth targets, while Morgan Sindall upgraded its profit outlook thanks to strength in its Fit Out unit. Legal & General also reaffirmed its medium-term targets and reported solid early 2025 performance.
