On Tuesday, London stocks experienced a decline as financials continued to suffer losses. Global markets remained apprehensive, with waning expectations of a Federal Reserve interest rate cut prompting a cautious stance among investors ahead of significant economic data releases. The blue-chip FTSE 100 slid 1.4% by 12:40 in a widespread sell-off, heading toward its fourth consecutive session in negative territory. The mid-cap FTSE 250 declined 1.2%, and is poised to mark its fifth consecutive day of losses.

Banking shares led the downturn, with the sector falling 3.3% as Barclays, HSBC, and Standard Chartered dropped between 3.1% and 3.6%, weighing heavily on the FTSE 100. Industrial miners faced pressure, with Anglo American leading declines at 3.6%, while Rio Tinto and Glencore fell 2.1% and 1.1%, respectively, as copper prices extended their previous session’s losses. Precious metal miners tumbled 2.6% as gold prices reached a one-week low. Travel and leisure stocks shed 2%, reflecting comparable weakness among European counterparts in light of escalating geopolitical tensions between China and Japan.

Advertisement · Scroll to continue. Global market sentiment continues to be influenced by worries regarding high valuations in the technology sector and a growing doubt about the likelihood of a Federal Reserve rate cut in December. Investors are currently concentrating on forthcoming U.S. economic data releases, which were postponed due to the recently concluded government shutdown. In the UK, market participants are closely monitoring the upcoming inflation report, with the next government budget announcement set for the following week.

Among individual movers, public transport operator FirstGroup plunged 14.2% after reporting a 4% decline in underlying passenger volumes in its First Bus unit for the first half of 2025. Bucking the negative trend, cigarette maker Imperial Brands opens new tab gained 1.3% after reporting annual profit that exceeded analyst expectations. Asset manager Intermediate Capital Group rose 5.1% following news that Europe’s largest asset manager Amundi would acquire a 9.9% stake in the company. Convenience food producer Greencore opened new tab jumped 5.6% after reporting full-year adjusted operating profit of 125.7 million pounds ($165.37 million), up from 97.5 million pounds the previous year.