Geopolitical Tensions Shake London Stocks: Midcap Index Hits Low

London's main stock indexes reversed early gains due to rising geopolitical tensions between Russia and the U.S. over Ukraine. The FTSE 100 declined by 0.4%, while the midcap FTSE 250 slipped 0.3%. Impacts on individual stocks were noted, with banks among the most affected sectors.

Amid escalating geopolitical tensions involving Russia and the United States over Ukraine, London's main stock indexes faced a downturn on Tuesday, with the midcap index experiencing a decline unseen in over three months. The export-oriented FTSE 100 fell by 0.4% after nearing a one-week high earlier, while the midcap FTSE 250 index decreased by 0.3%.

Bank stocks were the primary contributors to the largecap index's drop, as giants like Barclays, Lloyds, and HSBC each reported declines of over 1.1%. In contrast, safe-haven assets like gold and the U.S. dollar saw increases globally following Russia's new nuclear policy and Ukraine's reported use of long-range missiles. Luxury brand Burberry saw a 5.5% drop in stock, further decreasing the personal goods index by 4.2%.

Meanwhile, Mulberry Group experienced a 6.8% loss due to a wider first-half loss, while under CEO Andrea Baldo, strategic moves are underway to enhance operations and margins. Conversely, Imperial Brands leapt nearly 2% by exceeding profit forecasts and citing expectations for continued strong performance. Financial services firm UBS showed optimism by upgrading UK equities to an 'overweight' status, marking a hopeful trend in the market amidst the ongoing volatility.

(With inputs from agencies.)