UK equities edged lower at Tuesday’s open, with investor sentiment remaining cautious amid ongoing concerns about artificial intelligence–driven disruption and broader geopolitical uncertainty. Market participants are expected to keep a close watch on developments linked to the AI theme, which analysts say continues to influence global risk appetite.
Sterling slipped below the $1.34 level as trading began, while attention also turned to monetary policy developments. Four Bank of England rate-setters are scheduled to appear before parliament later in the day, with investors looking for clues on the likelihood of a potential interest rate cut in March as policymakers remain divided on the outlook.
As of 08:11 GMT, the FTSE 100 index was down 0.2%, while GBP/USD fell 0.1% to 1.3475. European markets also weakened, with Germany’s DAX and France’s CAC 40 both declining by around 0.3%.
UK market movers
Standard Chartered PLC (LSE:STAN) reported fourth-quarter results that missed analyst expectations, as higher costs and flat revenue growth weighed on performance. The Asia-focused bank posted underlying pre-tax profit of $1.24 billion for the three months to 31 December, below Bloomberg consensus estimates of $1.38 billion, although still 18% higher than the $1.05 billion recorded a year earlier. Operating income remained broadly unchanged at $4.85 billion, with growth in wealth solutions and global banking offset by weaker episodic trading income within markets.
Croda International PLC (LSE:CRDA) reported improved adjusted earnings for 2025, supported by strong performance in its Consumer Care and Life Sciences divisions. Group sales rose to £1.70 billion, representing a 6.6% increase at constant currency, driven mainly by a 9.6% rise in volumes. Adjusted operating profit climbed 7.9% to £295.3 million, lifting margins to 17.4%, while adjusted profit before tax increased 8.4% to £276.2 million. Adjusted basic earnings per share rose slightly to 146.2 pence from 142.6 pence a year earlier.
Unite Group PLC (LSE:UTG) reported a 2% decline in net asset value for 2025 and issued more cautious earnings guidance for the year ahead, reflecting weaker occupancy trends and moderating rental growth despite continued demand from higher-tariff universities. The student accommodation provider recorded net asset value of 955 pence per share, below Jefferies’ forecast of 988 pence. Adjusted earnings per share increased 2% year-on-year to 47.5 pence, marginally below expectations, while the company declared a dividend of 37.7 pence per share, slightly under consensus forecasts.
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