The launch of Donald Trump's long-threatened tariffs against Canada and Mexico today put global markets on edge.
Fears over the economic impact of the levies weighed on the oil price, while the FTSE 100 index fell back from a record.
On the corporate front, Greggs sales hit £2 billion for the first time but shares still fell sharply.
FTSE 100 Live Tuesday
- Tariffs weigh on risk sentiment
- Greggs' sales hit £2bn, shares fall
- Ashtead hit by construction weakness
Market update: FTSE 100 retreats as BP, IAG and Barclays weaken
10:28 , Graeme EvansCheaper oil stocks after the US imposed tariffs on goods from Canada and Mexico today dashed hopes of another FTSE 100 index record session.
BP fell 4% or 17.65p to 415.1p and Shell reversed 79p to 2577.5p as the price of Brent Crude dipped towards a three-month low at near $70 a barrel, reflecting fears that a prolonged trade war could derail the global economy.
High-flying British Airways owner IAG, whose recovery has been boosted by strong transatlantic passenger demand, fell 4% or 14.8p to 330.4p and US-focused investment bank Barclays lost 8.4p to 302.7p.
Other blue-chip strugglers included tech investors Polar Capital and Scottish Mortgage, with their shares down by more than 3% after the Nasdaq Composite last night lost another 2% and chip giant Nvidia fell 9%.
Their weakness led to the FTSE 100 index falling 43.33 points to 8827.98, having set another record high at the close of Monday’s session.
The decline was still better than in continental Europe, where fears of further US tariffs left Frankfurt’s Dax down by 1.7% and the Cac 40 in Paris 1.1% lower.
With President Trump carrying out his threat to impose tariffs on Canada, Mexico and China, the VIX fear index last night jumped to its highest level of the year and the S&P 500 index posted its worst session of 2025 by falling 1.8%.
UBS Global Wealth Management said Trump’s policies posed risks to growth but that so far the direct economic impact remains limited.
It added: “While the tariff rhetoric has rattled markets, we see it as part of Trump’s negotiation strategy rather than a fundamental shift in trade policy.
“He has historically used aggressive language as leverage, often walking back threats after securing concessions.”
The cautious mood in London failed to prevent more buying of Rolls-Royce shares, which rose another 13.6p to 790.4p. BAE Systems also added another 11p to 1622.5p after yesterday’s defence sector rally lifted shares 15%.
The best performing FTSE 100 stock was quality assurance business Intertek, which jumped 6% or 290p to 5445p after strong annual results led to a 40% jump in dividend.
It also announced a £350 million buyback and raised medium term margin guidance to 18.5% or more, which compares with 17.4% In today’s results.
Chief executive André Lacroix said: “Our high-growth cash compounder earnings model is getting stronger every year.”
In the FTSE 250 index, the annual results of ground engineering firm Keller and wealth management business Abrdn helped their shares jump 13% or 172p to 1460p and 16.1p to 178.1p respectively.
In contrast, Greggs fell 12% or 251p to 1831p as its figures failed to soothe City worries about cost of living pressures and elevated inflation in 2025.
The selling came despite the company topping £2 billion of annual sales for the first time and posting an 8.3% increase in profits to a record £203.9 million.
Chief executive Roisin Currie said: “The brand is in better shape than ever, with a material opportunity to continue growing and developing the Greggs estate and plenty of scope to continue to grow in newer dayparts and channels."
Ashtead shares fall amid US construction weakness
09:10 , Graeme EvansAshtead shares are down 4% in the FTSE 100 index after the Sunbelt plant hire firm reported lower activity levels in US local commercial construction.
It said these markets were feeling the impact of the prolonged higher interest rate environment.
The trends partly offset strong trading elsewhere in North America due to the strength of mega projects and hurricane response efforts.
Rental revenues grew by 1% in the company’s third quarter and by 5% across the first nine months of the financial year.
Operating profit fell 7% in the three month period, reflecting lower used equipment sales and the impact of higher depreciation and interest costs.
The company forecast annual results in line with its previous expectations. However, shares fell 169p to 4630p following the update.
Tough conditions trigger fresh Greggs slide
08:48 , Graeme EvansThis year’s poor run for Greggs shares has continued, despite the company unveiling record profits and forecasting another year of progress in 2025.
The FTSE 250-listed stock reversed 207p to 1875p, extending losses since the Christmas trading update to about 33% as the valuation returns to where it was in late 2022.
The latest selling came as Greggs noted the ongoing impact of the tough economic landscape, elevated inflation and cost of living pressures.
After years of financial anxiety, it said customers are still facing concerns about energy prices and increased mortgage and rent costs.
Despite the challenging food-to-go market, the company said: “Greggs has demonstrated its ability to make positive progress and we remain confident that Greggs can and will continue to grow.”
Adam Vettese, market analyst at eToro, said: “Greggs have said they will open another 140-150 shops this year, although this morning's sell-off seems to indicate there’s some scepticism that the firm can keep up the growth momentum and deliver on the bottom line.
“Undoubtedly there are many investors out there who have done very well on Greggs over the last few years, but sentiment seems to have shifted and a more cautious approach prevails for now.”
Oil giants lead FTSE 100 lower, Greggs down 9%
08:26 , Graeme EvansThe FTSE 100 index has fallen back from last night’s record high, with London’s top flight down by 0.5% or 47.78 points to 8823.53.
Shell and BP weighed on the index as fears of economic disruption due to US tariffs caused the price of Brent Crude to slip to a three-month low at just above $70 a barrel.
BP fell 4% or 16.7p to 416.05p and Shell reversed 3% or 88.5p to 2571p.
Mining stocks also weakened as Glencore and Anglo American lost about 2% of their value.
The US-focused plant hire business Ashtead dropped 2.5% or 8.5p to 327.5p, despite forecasting annual profits in line with City expectations.
The momentum behind defence-focused stocks continued as BAE Systems added another 31p to 1642.5p and Rolls-Royce lifted 10,2p to 787p.
Testing firm Intertek led the FTSE 100 index as annual results helped the stock to jump 7% or 340p to 5495p.
The FTSE 250 index fell 0.5% or 101.95 points to 20,280.34, with record 2024 figures not enough to prevent bakery chain Greggs falling 9% or 197p to 1885p.
Markets rattled as new tariffs come into force
07:56 , Graeme EvansEuropean traders are braced for a risk-averse session after new US tariffs on goods from Canada, Mexico and China came into effect.
The VIX fear index last night jumped to its highest level of the year, while the S&P 500 index posted its worst session of 2025 by falling 1.7%. Nvidia shares fell 9%.
US imports from Canada and Mexico totalled over $900 billion in 2024, adding to fears that these tariffs and retaliatory moves could derail the global economy.
Gold this morning traded near a record high at close to $2900 an ounce, while the price of Bitcoin has fallen sharply to $83,400 amid the uncertainty.
UBS Global Wealth Management said President Trump’s policies posed risks to growth but that so far the direct economic impact remains limited.
It added: “While the tariff rhetoric has rattled markets, we see it as part of Trump’s negotiation strategy rather than a fundamental shift in trade policy.
“He has historically used aggressive language as leverage, often walking back threats after securing concessions.”
Greggs posts record profit as sales hit £2 billion
07:14 , Graeme EvansBakery chain Greggs today revealed £2 billion of annual sales for the first time.
The 11.3% increase for 2024 led to an all-time high for profits, with the surplus of £203.9 million up 8.3% on a year earlier.
A record 226 new shop openings in 2024, alongside 28 closures and 53 relocations, grew the estate to 2618 outlets by the end of the year.
Chief executive Roisin Currie said: "In 2021, we set our sights on doubling sales by 2026 and having a significantly bigger business over the longer term.
“Three years into this five-year plan, sales are on track and we continue to be confident in the growth opportunity in front of us.
“The brand is in better shape than ever, with a material opportunity to continue growing and developing the Greggs estate and plenty of scope to continue to grow in newer dayparts and channels."
She said like-for-like sales in company-managed shops increased by 1.7% year-on-year in the first nine weeks of 2025, with the impact of challenging weather conditions in January followed by improved trading in February.
FTSE 100 seen lower, US benchmarks post big falls
07:04 , Graeme EvansThe FTSE 100 index is poised to fall back from its record high as markets react to the confirmation of US tariffs on goods from Canada and Mexico.
Stronger defence stocks meant London’s top flight climbed 62 points or 0.7% to finish last session at an all-time high close of 8871.
Futures trading is pointing to a fall of about 0.5% or 40 points at today’s opening bell following poor sessions for US and Asia markets.
The uncertainty caused by the trade tariffs and ongoing tech sector weakness meant the S&P 500 index fell 1.8% and the Nasdaq Composite by 2.6%.
The Nikkei 225 lost more than 1% , while the Hang Seng index in Hong Kong recovered from a weak start to trade near its opening mark.
