London pre-open: FTSE seen lower after Asian tech selloff

(Sharecast News) - London stocks were set to fall at the open on Tuesday following heavy losses in Asian markets amid renewed concerns about tech stocks.

The FTSE 100 was called to open down around 35 points.

South Korea's Kospi tumbled more than 10% and Japan's Nikkei slumped 4.4% after The Information reported that China's Shanghai Yuliangsheng had started mass production of a chipmaker technology that has been long-dominated by Dutch company ASML.

Shares of SK Hynix and Samsung Electronics fell sharply.

Chris Beauchamp, chief market analyst at IG, said: "The end is not yet in sight for the slump in these two previous high-flying indices. Fresh fears about AI overspend and new Chinese competition have resulted in both falling to their lowest level in months, though they are still firmly in positive territory for the year.

"The Kospi is still up 45%, though that is little comfort to those who rushed in at any point since mid-April. What is also interesting is how this carnage continues to remain contained - the Dow, FTSE 100 and Dax are all holding up well suggesting that, for now at least, it is just markets punishing excessive greed in one area rather than the makings of a broader selloff."

In corporate news, Barclays delivered a 17% jump in half-year profits driven by higher income in its global markets division and investment banking fees.

Pre-tax profit for the six months to 30 June came in at �6bn while group income increased 11% to �16.5bn, further boosted by higher structural hedge income and the.�225m gain from the sale of the AA portfolio. Barclays also announced a �1bn share buyback.

Consumer goods giant Unilever boosted its full-year outlook following a strong first-half.

Underlying sales growth in the six months to June end rose by 4.8%, driven by robust performances in homecare and beauty and wellbeing. Volumes sparked 4.2% and prices 0.6%. Operating profits were 2.6% higher at �4.9bn.

As a result, the blue chip now expects underlying sales in the second half to rise by between 4% and 5%, led by pricing, with full-year sales growth of between 4% and 6%.

Chemicals firm Croda posted a sharp increase in interim profits, with growth driven by stronger innovation demand and a solid performance across key consumerfacing divisions.

Adjusted operating profits rose 6.7% to �155.8m, supported by 4.6% organic sales growth and a strong second quarter, where sales were up 9%. Consumer care led the way, delivering 8% growth, including gains of 19% in its beauty actives wing.

The firm said margins also improved, with adjusted operating margins rising to 17.7%. Croda added that it expects further expansion in the second half as transformation benefits build.