Britain’s FTSE 100 index dipped modestly on Tuesday as market participants digested ongoing uncertainty over U.S. tariff policies and fresh concerns about the implications of artificial intelligence on profit forecasts for major companies.

The index’s technology and financial sectors were among the laggards, while select defensive and niche growth names showed resilience.

Investors highlighted that tariff ambiguity and AI disruption fears continue to weigh on risk sentiment and sector rotation strategies. While some firms with strong earnings outlooks performed better, broader market caution was evident.

Tech and finance stocks saw selling pressure as investors rotated toward more stable sectors amid policy uncertainty.

Financial programmers said that operating in an environment where tariffs and trade rules shift unpredictably makes risk management more challenging for global portfolios.

Banks and fintech shares were particularly sensitive to changes in interest rate expectations and trade policy positioning.

At the same time, certain healthcare and consumer goods stocks bucked the broader trend, supported by robust earnings updates and defensive characteristics that appeal during volatility.

Market breadth remained mixed, with gains in a few subsectors counterbalanced by losses across broader indexes.

Analysts said that clarity on tariff structures and AI regulatory frameworks may be key to restoring confidence in more cyclical and innovation-led segments of stock markets.

Global fund flows into the UK market reflected caution, with investors favouring diversified exposures.

Currency markets also reacted modestly, with the British pound showing limited movement against major peers. Broader macro and policy drivers continued to shape FX and equity dynamics.

Source: Reuters.