London markets avoid tech sector turbulence to close higher

London’s top index moved closer to another record high on Tuesday as it benefitted from defensive traders buying into consumer and property stocks.

Energy firms in the UK and across Europe also benefitted from stabilising prices during the session.

It came amid continued volatility for technology stocks linked to the emergence of Chinese artificial intelligence firm DeepSeek.

The FTSE 100 finished 30.16 points, or 0.35%, higher to end the day at 8,533.87.

Across the Atlantic, the S&P 500 and Nasdaq both opened in the red but recovered ground as traders started a cautious rebound.

Joshua Mahoney, chief market analyst at Scope Markets, said: “The FTSE 100 continues to sail through choppy water with relative ease, as European traders enjoy a brief period of outperformance built around the general lack of big tech companies this side of the Atlantic.

“Chinese stocks continue to rise as people seek the weigh up the validity of the valuation disparity compared with the US in a world where AI isn’t just a US-centric affair.”

In continental Europe, Germany’s Dax increased to a fresh record high as it benefitted from a rebound in Siemens Energy shares.

The Cac 40 ended 0.12% lower for the day and the Dax index was up 0.74%.

Meanwhile, sterling slipped back against a strengthening dollar which was supported by further speculation regarding impending tariffs.

The pound was down 0.52% at 1.243 US dollars and was up 0.13% at 1.192 euros when London’s markets closed.

In company news, Halfords shares found another gear on Tuesday after the motor accessories and cycling retailer said profits are set to be better than forecast thanks to a recent recovery in trading.

The firm said retail trading rebounded over Christmas, with like-for-like bike sales jumping 13.1% in December and motoring sales boosted by cold weather.Shares in Halfords were up 13.5% at 143p as a result.

Elsewhere, Smiths Group was among the FTSE 100’s weaker performers after it revealed its global systems have been hit by a cyber attack.

The FTSE 100 engineering firm said it was “currently managing” the hack, which has affected its internal systems worldwide.

Investors were nervous as a result, with shares slipping by 2% to 1,845p.

Wickes made strong gains after reporting better news on profits thanks to improving sales in the face of an ongoing clampdown on spending for big purchases.

The retailer saw like-for-like retail sales to DIY customers and local trade professionals rise 2.6% over the six months to December 28, up from growth of 0.6% in the first half. Shares were up 16.3% to 178.2p for the session.

The price of oil swung back higher amid further tariff threats from US President Donald Trump.

A barrel of Brent crude oil was up by 0.26% to 76.88 dollars (£61.86) as markets were closing in London.

The biggest risers on the FTSE 100 were Experian, up 143p to 3,966p, Scottish Mortgage Investment Trust, up 37.5p to 1,042p, Spirax, up 285p to 7,960p, Halma, up 105p to 2,944p, and Barratt Redrow, up 15.7p to 452.5p.

The biggest fallers on the FTSE 100 were Beazley, down 20.5p to 812p, Antofagasta, down 37.5p to 1,659p, Fresnillo, down 14.5p to 657p, Smiths Group, down 38p to 1,845p, and Glencore, down 6.55p to 354.95p.