Market open
British stocks began trading lower on Tuesday as investors maintained a cautious stance amid ongoing worries about AI-related disruption and persistent geopolitical uncertainty. At 0811 GMT the blue-chip FTSE 100 index was down 0.2%. The British pound slipped 0.1% against the dollar to trade at 1.3475. European benchmark indices were also softer, with Germany's DAX and France's CAC 40 each falling 0.3%.
Market participants are expected to keep the AI theme in focus, according to experts cited in market commentary, with sentiment remaining fragile as a result.
Policy focus
On the policy front, four Bank of England rate-setters are scheduled to give testimony before parliament today. Markets will be watching closely for any signals about the trajectory of UK monetary policy, including the possibility of a March rate cut, amid evident division among policymakers.
Corporate updates
Standard Chartered PLC reported fourth-quarter underlying pretax profit of $1.24 billion for the three months ended December 31. That figure was below the $1.38 billion consensus compiled by Bloomberg, though it still represented an 18% increase from $1.05 billion a year earlier. The Asia-focused bank's operating income was broadly flat at $4.85 billion versus $4.83 billion in the same quarter a year earlier. Management said growth in wealth solutions and global banking helped offset weaker episodic trading income in markets, while flat revenue and higher expenses weighed on overall performance.
Croda International PLC delivered stronger adjusted earnings for the period reported as 2025 results, supported by expansion in its Consumer Care and Life Sciences divisions. Group sales rose to 1.70 billion, an increase of 6.6% at constant currency, driven mainly by a 9.6% rise in volumes. Adjusted operating profit climbed 7.9% at constant currency to 295.3 million, with an improvement in the adjusted operating margin to 17.4%. Adjusted profit before tax increased 8.4% to 276.2 million, and adjusted basic earnings per share edged up to 146.2 pence from 142.6 pence.
Unite Group PLC, the UK's largest student-accommodation provider, reported a 2% decline in net asset value for 2025 and signalled slower earnings guidance for the year ahead. The company posted a net asset value of 955 pence, below Jefferies' estimate of 988 pence. Adjusted earnings per share rose 2% year-on-year to 47.5 pence, slightly under Jefferies' forecast of 47.8 pence. Unite declared a dividend of 37.7 pence, marginally below the expected 38.2 pence. Company commentary attributed the relative weakness to softer occupancy and easing rental growth, which offset steadier demand at higher-tariff universities.
Outlook
Overall, the market tone at the open reflected a combination of macro-level anxieties - notably about technology-driven disruption and geopolitical risks - and specific corporate results that produced a mixed signal for investors. With Bank of England testimony expected and a stream of corporate releases underway, market participants are likely to continue monitoring both policy and earnings developments closely.
Note: This report summarises market moves and company results disclosed in morning trading and does not provide investment advice.