London stocks dived on Tuesday, with most sectors in the red, as traders pulled back expectations of rapid US rate cuts, while shares of Dr Martens and Superdry tumbled on disappointing corporate updates.
The resource-heavy FTSE 100 and the mid-cap FTSE 250 fell 1.5% each by 0835 GMT.
While the FTSE 100 looked set for its biggest intraday percentage drop in eight months, the FTSE 250 was on track for the biggest decline in three months.
Dr Martens slumped 31.3% to a record low after it named a new CEO and flagged a challenging fiscal 2025 on weak US demand.
The personal goods sector led sectoral losses, falling 4.1% on the news. Superdry tumbled 18.8% after it launched a turnaround plan that included an equity raise that would take the firm private.
Industrial Metal miners followed with a 2.9% fall after prices of non-ferrous metals dropped on a stronger US dollar. The precious metal miners index was the only outlier, rising 0.9% as concerns over rising geopolitical tensions between Iran and Israel propped up demand for gold.
Investors’ expectations of a rate cut by the US Federal Reserve further inclined toward September after hotter-than-expected retail sales data narrated a higher-for-longer story.
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Meanwhile, unemployment in the UK edged higher in February and wages saw their weakest climb since mid-2022, bolstering bets for Bank of England rate cuts in the near future.
“The data has taken a real bite out of the FTSE 100,” said Danni Hewson, head of financial analysis at AJ Bell, as the unemployment data “sort of signals that cracks have started to show in the UK labour market.”
British recruiters Hays and Robert Walters dropped 4.1% and 5.6%, respectively, following a drop in their quarterly net fees, dragged by low client and candidate confidence in major markets amid sluggish hiring conditions.
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