UK shares tumble as Russia-Ukraine crisis escalates

UK's main indexes tracked a slump in global markets on Tuesday, as geopolitical tensions worsened after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine. Hargreaves Lansdown fell 16.7% after reporting a drop in half-year profit, hurt by lower interest rates and easing market volatility following a year marked by a retail trading frenzy.

UK's main indexes tracked a slump in global markets on Tuesday, as geopolitical tensions worsened after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine. The blue-chip FTSE 100 fell 1.3% at 0808 GMT, while the domestically focussed mid-cap index declined 1.8%.

The United States and its European allies are poised to announce new sanctions against Russia after Putin formally recognised two breakaway regions in eastern Ukraine and ordered troops in those areas. Russia-exposed miners Polymetal International, Petropavlovsk PLC and EVRAZ fell between 3.5% and 11.7% on the possibility of sanctions.

In earnings-driven news, HSBC fell 2.2%, tracking a drop in its Hong-Kong listed shares in a weaker market, despite bringing forward its key profitability target by a year and more than doubling its annual profits. Hargreaves Lansdown fell 16.7% after reporting a drop in half-year profit, hurt by lower interest rates and easing market volatility following a year marked by a retail trading frenzy.