FTSE 100 down as AI worries knock data providers

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The FTSE 100 closed decrease on Tuesday as a rally in mining shares was offset by hefty falls in software program, knowledge analytics and promoting firms amid perceived AI threats.

The FTSE 100 index closed down 26.97 factors, or 0.3%, at 10,314.59.

The FTSE 250 ended down 135.68 factors, or 0.6%, at 23,290.37, and the AIM All-Share closed up 3.99 factors, 0.5%, at 818.33.

On the FTSE 100, Relx slid 14%, London Inventory Alternate Group tumbled 13%, Experian slumped 8.3%, Sage Group declined 6.5% and Pearson 7.7%.

The sharp falls got here after US synthetic intelligence agency Anthropic launched new ‘agentic AI’ instruments for company authorized groups, together with a authorized plug-in for its Claude generative AI chatbot.

The US AI firm mentioned the device can automate authorized work reminiscent of reviewing contracts, triaging non-disclosure agreements, composing briefings and offering templated responses.

The roll-out renewed fears that AI will threaten current enterprise fashions, hitting gross sales and progress.

Relx owns LexisNexis, a supplier of knowledge and analytics to legislation companies, whereas London Inventory Alternate is a monetary knowledge supplier.

Experian is a credit score checker, Pearson a supplier of academic content material and assessments whereas Sage sells accountancy software program.

In Europe, Dutch writer Wolters Kluwer fell 13%, whereas losses unfold to the promoting world the place WPP slumped 8.7%, and Publicis, which additionally reported fourth quarter outcomes, which was down 8.9% in Paris.

Within the US, knowledge supplier Thomson Reuters slumped 16%.

In European equities on Tuesday, the CAC 40 in Paris closed down barely, whereas the DAX 40 in Frankfurt eased 0.1%.

Heading increased in London had been mining shares, which rallied after latest falls.

Gold was quoted increased at 4,971.16 {dollars} an oz on Tuesday, up in opposition to 4,696.11 {dollars} on the similar time on Monday.

Silver rebounded 12% and copper strengthened 4.5%.

The highest 5 blue chip risers had been all miners, with Anglo American up 7.3%. Fresnillo up 6.4%, Antofagasta up 6.3%, Endeavour Mining, up 3.9% and Glencore up 3.3%.

“The sharp sell-off in gold over the previous few days has inspired buyers to purchase on the dip, scooping up the valuable steel of their droves and making it sparkle once more,” mentioned AJ Bell analyst Russ Mould.

Thursday is the deadline day for Rio Tinto to agency up a bid for Glencore.

On Tuesday, Glencore mentioned Orion Essential Mineral Consortium is wanting into shopping for a 40% stake in Glencore’s pursuits in its Democratic Republic of Congo belongings, Mutanda Mining and Kamoto Copper Co for round 9 billion {dollars}.

On the FTSE 250, Plus500 rose 7.0% after it introduced the launch of a US prediction markets platform with a regulated business-to-consumer providing.

The Haifa, Israel-based contracts-for-difference buying and selling platform operator mentioned it entered into the US retail prediction markets section with the launch of the platform which incorporates merchandise from Kalshi Alternate, which Plus500 says is the primary regulated event-based contracts change within the US.

AG Barr jumped 5.7% because it mentioned its annual buying and selling was in step with forecasts, and introduced the acquisitions of the Fentimans and Frobishers Juices manufacturers.

The Cumbernauld-based smooth drinks manufacturing firm mentioned income for the yr ended January 31 elevated by round 4% to about £437 million from £420 million the yr earlier than.

The Irn-Bru proprietor delivered “modest progress” within the second half, it mentioned, with “good performances” from Rubicon and Enhance.

Shares in New York had been decrease. The Dow Jones Industrial Common was down 0.1%, the S&P 500 index was 0.6% decrease, and the Nasdaq Composite declined 1.3%.

PayPal sank 19% after naming a brand new chief govt as fourth quarter outcomes and steerage missed forecasts.

The San Jose, California-based monetary transaction processing companies firm mentioned efficiency had been “stable”, however execution “has not been the place it must be, significantly in branded checkout”.

PayPal mentioned some progress has been made in various areas over the past two years, however “the tempo of change and execution was not in step with the board’s expectations”.

Consequently, PayPal appointed Enrique Lores as president and chief govt, efficient March 1.

Mr Lores, who has served on the PayPal board for practically 5 years and as chairman since July 2024, succeeds Alex Chriss.

One other change on the prime got here at Disney which introduced chief govt officer Robert Iger will step down subsequent month.

The anticipated transfer sees Disney Experiences chairman Josh D’Amaro promoted to the function of chief govt, as broadly flagged.

Disney, which reported outcomes on Monday, was down 2.4%.

The yield on the US 10-year Treasury was quoted at 4.29%, stretched from 4.25%. The yield on the US 30-year Treasury was quoted 4.92%, widened from 4.85%.

The pound was quoted increased at 1.3695 {dollars} on the time of the London equities shut on Tuesday, in contrast with 1.3651 {dollars} on Monday.

The euro stood increased at 1.1818 {dollars}, in opposition to 1.1804 {dollars}. Towards the yen, the greenback was buying and selling increased at 155.73 yen in contrast with 155.52 yen.

Elsewhere, CyanConnode soared 19% after asserting it had obtained a takeover method from Dubai-based Esyasoft Holding.

The Cambridge-based developer of narrowband radio frequency mesh networks mentioned the potential takeover supply would worth it at £35 million, round 9.75 pence per share.

Brent oil was quoted at 67.15 {dollars} a barrel on the time of the London equities shut on Tuesday, up from 66.03 {dollars} late on Monday.

The largest risers on the FTSE 100 had been Anglo American, up 250.0p at 3,700.0p, Fresnillo, up 234.0p at 3,902.0p, Antofagasta, up 228.0p at 3,868.0p, Endeavour Mining, up 162.0p at 4,272.0p and Glencore, up 16.3p at 517.3p.

The largest fallers on the FTSE 100 had been Relx, down 371.0p at 2,214.0p, London Inventory Alternate Group, down 1,054.0p at 7,180.0p, ICG, down 148.0p at 1,656.0p, Pearson, down 75.0p at 894.6p and Experian, down 185.0p at 2,555.0p.

Wednesday’s world financial calendar has a slew of composite PMI readings, eurozone PPI figures and ADP payroll knowledge within the US.

Wednesday’s UK company calendar has full-year outcomes from prescribed drugs agency, GSK.

– Contributed by Alliance Information