The FTSE 100 dipped on Tuesday as tensions in Eastern Europe ratcheted up amid threats of a nuclear response by Russia after Ukraine fired missiles at targets in Russia for the first time.
The Ukraine-Russia conflict is a primary uncertainty following the reelection of Donald Trump. However, it’s the outgoing President Biden who sparked the most recent wave of anxiety after giving Ukraine permission to fire long-range missiles into Russia, which it did without delay.
Russia quickly responded with threats of a nuclear war should attacks supported by foreign-made weapons continue.
The latest escalation follows reports of North Korean troops joining Russian forces to replenish the 10,000s of casualties suffered by the aggressors. Trump has a job on his hands to end the war in 24 hours when he takes control in 2025.
Uncertainty about Donald Trump’s actions when he enters the White House and worries about interest rates have been unsettling equity investors. The introduction of threats of nuclear missile strikes accelerated the selling of European and US equities, sending major indices sharply lower.
The FTSE 100 reversed early gains in a violent sell-off as news broke about Ukraine striking targets deep inside Russia, leaving London’s leading index trading down 0.36% at the time of writing.
Imperial Brands
Imperial Brands was the top riser after the tobacco company announced final results that showed robust sales across all categories.
“Imperial Brands’ shares have been soaring in 2024, climbing by more than a third, and today brought more good news for shareholders. The tobacco giant reported a 4.6% increase in operating profit for the year, alongside a promise of further shareholder returns through buybacks and dividends,” said Mark Crouch, Market Analyst at eToro.
“Despite a cloud of regulatory uncertainty gathering over the tobacco industry, tobacco stocks continue to attract a long line of investors, even as global demand for traditional tobacco products declines. Imperial Brands’ pivot into vaping products has been a key growth driver as it ramps up investments to diversify its portfolio, positioning itself for potential regulatory headwinds down the road.”
Imperial Brands were 2.7% higher at the time of writing.
At the other end of the leaderboard, Diploma shares sank 7% after missing analyst estimates.
“Industrial-to-healthcare distributor Diploma was the top faller on the FTSE 100 after a rare profit and revenue miss with its full-year results,” said Russ Mould, investment director at AJ Bell.
“The company has built a reputation of being a ‘Steady Eddie’ operator and while the latest figures still show earnings progression, it’s not quite to the level forecast by analysts.”