FTSE 100 Flat as Bank Losses Offset Mining Gains Amid Ongoing Tariff Concerns

London’s FTSE 100 closed little changed on Tuesday as gains in mining and utilities stocks were offset by weakness in the banking sector, while investors continued to assess the implications of evolving United States trade policy.

The blue chip index ended the session broadly flat, while the domestically focused FTSE 250 slipped slightly. Market sentiment remained cautious as traders balanced sector specific developments with broader macroeconomic uncertainty linked to global tariffs and interest rate expectations.

Mining stocks provided the strongest support to the benchmark index. Shares in Rio Tinto and Glencore both rose more than one percent as copper prices climbed to their highest level in over a week. The rebound in industrial metals offered relief to a sector that has faced volatility in recent months due to fluctuating demand expectations and geopolitical risks.

Technology shares also posted modest gains after artificial intelligence firm Anthropic unveiled new tools aimed at improving how businesses integrate AI into their workflows. The announcement lifted sentiment across parts of the UK tech sector, mirroring strength seen in US technology stocks.

However, gains were capped by declines in financial stocks. The banking sector fell around half a percent, tracking broader weakness in global financial markets. Standard Chartered dropped despite reporting a rise in full year pretax profit, announcing a 1.5 billion dollar share buyback and increasing its annual dividend significantly. Investors appeared focused on external risks rather than corporate earnings improvements.

Ongoing trade uncertainty weighed on overall market confidence. The United States began collecting a temporary ten percent global import tariff this week, with the administration signaling potential plans to raise the rate further. The policy shift follows recent legal developments that disrupted earlier tariff measures, adding to unpredictability in global trade flows.

The United Kingdom previously negotiated a reciprocal ten percent tariff arrangement with Washington. Trade officials have expressed confidence that the agreement remains intact, but investors are monitoring any developments that could affect cross border supply chains and export driven sectors.

Monetary policy also remains in focus. Bank of England Governor Andrew Bailey recently indicated that a rate cut as early as March remains possible, though he cautioned that services inflation continues to run high. Markets are currently pricing in potential easing later this year, a factor that could influence currency and equity valuations.

Among individual movers, medical equipment maker Convatec surged after raising its medium term revenue growth target, supported by a strengthening product pipeline. Specialty chemicals firm Croda also advanced after forecasting improved profit margins in the coming years as it streamlines operations.

Despite daily fluctuations, analysts note that the FTSE 100 has largely traded within a narrow range over recent months, reflecting a balance between resilient corporate earnings and persistent global uncertainties.