FTSE 100 slips on tariff jitters as AI disruption fears weigh on stocks

Feb 24 (Reuters) - The UK's FTSE 100 dipped on Tuesday, echoing a downbeat sentiment across global markets as investors grappled with tariff-related trade uncertainties as well as worries about potential disruption from artificial intelligence.

Market reaction and sector moves

The blue-chip index was down 0.1% at 1140 GMT, while the domestically focused mid-cap FTSE 250 was up 0.07%.

Tariff developments and trade context

President Donald Trump imposed a new tariff from Tuesday of 10% on all imported goods not covered by exemptions, rather than the 15% he promised earlier, after his levies were struck down by the Supreme Court.

The British government had negotiated a reciprocal tariff rate at 10% after reaching a deal with the U.S. last year.

AI-related sector pressures

Global stocks also came under pressure with sectors considered as vulnerable to disruption from AI, such as software and private equity, slumping overnight on Wall Street after a report from Citrini Research laid out the possible risks to the global economy from the fast-evolving technology.

Tech and data services

British technology stocks fell 1%, with information group RELX and exchange operator London Stock Exchange Group down 1.3% and 0.4%, respectively. 

Hardware and chip-adjacent plays

Computer hardware firm Raspberry Pi, which traders in the past have seen as a beneficiary of low-cost AI projects, jumped 11.7%.

UK banks under pressure

Meanwhile, banks slipped 1.2%, with Lion Finance and Barclays dropping 1.5% each, while Lloyds fell 1.9%.

Standard Chartered results

Standard Chartered dipped 2% even as the bank reported a rise in full-year pretax profit, announced a $1.5 billion share buyback and a full-year dividend that was up 65% from a year earlier.

Convatec guidance raise

Earnings and outlook updates

On the earnings front, Convatec climbed 10% to the top of the benchmark index after the medical equipment maker raised its medium-term organic revenue growth target, citing a strengthening product pipeline.

Croda profit margin target

Croda rose 3.4% after the specialty chemicals maker forecast ambitious profit margins for 2028, as it continues to streamline its operations following last year's subdued demand in some regions linked to U.S. tariffs.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)