The FTSE 100 moved higher on Tuesday, recovering from early losses as selling pressure in technology stocks eased following reports of progress in China’s domestic semiconductor equipment industry. Investors also continued to monitor geopolitical developments in the Middle East and the latest round of UK corporate earnings.
By 07:40 GMT, the FTSE 100 was up 0.22%, while Germany’s DAX gained 0.29% and France’s CAC 40 advanced 0.42%. Sterling was little changed against the US dollar, with GBP/USD edging 0.05% higher to 1.33051.
Technology stocks came under pressure earlier in the session after reports suggested China had made significant advances in developing home-grown semiconductor manufacturing equipment. The news weighed on major US chipmakers ahead of the market open, with Nvidia and AMD both trading lower in pre-market activity.
The weakness spread across Asian markets, with Japan’s Nikkei 225 and South Korea’s Kospi posting notable declines as semiconductor manufacturers Samsung Electronics and SK Hynix fell sharply. Hong Kong’s Hang Seng and China’s Shanghai Composite recorded more modest losses, while Australia’s S&P/ASX 200 ended the session in positive territory.
Meanwhile, geopolitical tensions remained elevated after Yemen’s Houthi movement claimed responsibility for drone attacks targeting Saudi Arabian crude oil supply and transport infrastructure, including facilities linked to shipments to the Red Sea port of Yanbu.
Military spokesperson Brigadier General Yahya Saree said the strikes were carried out in response to what the group described as “Saudi enemy drone incursions into Yemeni airspace.”
The Houthis also claimed to have shot down a Saudi Bayraktar Akinci drone over Al-Jawf Governorate on July 26.
In the United States, President Donald Trump said he was not concerned by Israeli objections to a proposed sale of F-35 fighter jets to Turkey ahead of talks in Washington with Israeli Prime Minister Benjamin Netanyahu.
“Nobody tells me what we should be selling,” Trump said, describing Turkey as “a tremendous ally.”
Trump also dismissed suggestions that Russian support for Iran had materially influenced the conflict, stating, “They have no army, they have no air force, they have no navy.” He added that he intended to discuss Ukrainian allegations regarding Russian satellite intelligence support for Iran during future talks with President Vladimir Putin.
Separately, a federal judge in Florida granted Trump’s legal team until August 27 to amend its $15 billion defamation lawsuit against The New York Times. The newspaper described the case as “an attempt to stifle independent reporting” with “no merit.”
Commodity markets were weaker during the session. Brent crude fell 1.5% to $84.59 a barrel, while WTI crude declined 1.4% to $81.40. Gold futures dropped 0.64% to $4,050.70 per ounce, with spot gold also trading lower.
UK Corporate Highlights
BT (LSE:BT.A) said its Openreach division is facing a proposed intervention from regulator Ofcom over a discounted broadband pricing initiative that the watchdog believes could make it more difficult for alternative fibre providers to compete.
Barclays (LSE:BARC) reported a 17% increase in first-half profit, exceeded market expectations, upgraded its 2026 income guidance and announced a £1 billion share buyback, supported by strong performances in equities trading and investment banking.
Unilever (LSE:ULVR) delivered second-quarter sales growth ahead of forecasts and raised its outlook for underlying sales growth in 2026 as demand remained resilient across its beauty, home care and household product businesses.
Unite Group (LSE:UTG) reported an 8% decline in adjusted first-half earnings, partly reflecting acquisition-related costs, but maintained its full-year guidance as it continued to optimise its property portfolio.
Man Group (LSE:MAN) announced record assets under management alongside stronger-than-expected first-half client inflows, benefiting from heightened market volatility that supported demand for its investment products.
SSP Group (LSE:SSPG) reaffirmed its full-year outlook after posting solid third-quarter sales growth. Strong trading in the UK and Ireland helped offset weaker passenger demand in markets affected by disruption in the Middle East.
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