Mirroring a global market sentiment, the United Kingdom's FTSE 100 traded in the red on Tuesday. Tariff-related uncertainties have been weighing heavily on the investor sentiment, even as there are also worries about potential disruption from artificial intelligence.
Reuters reported that the blue-chip index FTSE was down 0.1% at 11:40 GMT, while the domestically focused mid-cap FTSE 250 (FTMC) was up 0.07%.
Markets globally have shown jitters as uncertainty prevailed even after the Supreme Court of the United States struck down US President Donald Trump's tariffs. There was a brief feel-good sentiment in the markets, following which the gloom returned, soon after Trump announced fresh tariffs.
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Trump imposed a new tariff of 10% on all imported goods not covered by exemptions, rather than the 15% he promised earlier. The British government had negotiated a reciprocal tariff rate of 10% after reaching a deal with the US last year.
The British technology stocks (FTUB1010), meanwhile, fell 1%, while information group RELX (REL.L) and exchange operator London Stock Exchange Group dropped 1.3% and 0.4% respectively.
Banks, meanwhile, in the UK could also be seen under some pressure, with the index (FTNMX301010) slipping 1.2%. Lion Finance and Barclays dropped 1.5% each, while Lloyds slipped 1.9% and Standard Chartered dipped 2%.
Global stocks, meanwhile, have come under pressure as well, with sectors considered vulnerable to AI disruption slumping overnight on Wall Street. The slump came. Citrini Research came out with a report that laid out the possible risks to the global economy from the fast-evolving technology.
What's AI Scare?
The new AI tools have no history of sales revenues. The lack of understanding of whether the AI tools will replace traditional software firms is scaring the investors off.
Investors, experts say, are expected to remain jittery with the AI disruption. As more and more AI tools are introduced in the market, the sell-off of the tech companies is expected.
Also Read: Uniform US Tariff Would Benefit Some Asia-Pacific Economies: Moody's Analytics
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