British Pound Drops Nearly 1% Against USD Amid UK Fiscal Concerns

London – The British pound continued to decline on Tuesday as concerns over the United Kingdom’s public finances intensified.

As of 9:38 a.m. London time (4:38 a.m. ET), GBP had fallen 0.9% against the U.S. dollar. Meanwhile, European stock markets traded in negative territory as global tariff uncertainties weighed on investor sentiment.

FTSE 100 (UK): down 0.4%

DAX (Germany): down 0.88%

FTSE MIB (Italy): down 0.46%

CAC 40 (France): flat

Stoxx Europe 600: down 0.6%

Corporate Highlights

Partners Group – The private markets investor topped the Stoxx 600 index after reporting first-half profits of 578 million Swiss francs ($720 million), exceeding analyst expectations of 570 million francs, driven by higher performance fees.

Fresenius Medical Care – Shares listed in Frankfurt tumbled 5.5%, ranking at the bottom of the Stoxx 600, after UBS downgraded the stock to “Sell.”

Italian Banking Merger: Monte dei Paschi Ups Offer for Mediobanca

In the ongoing Italian banking consolidation saga, state-backed Monte dei Paschi sweetened its bid for Mediobanca by adding €0.90 ($1.05) in cash per share, alongside an exchange of 2.533 Monte dei Paschi shares for each Mediobanca share tendered. The revised proposal represents an 11.4% premium over Mediobanca’s January 23 closing price.

Mediobanca had previously rejected the initial all-stock offer earlier this year. However, its recent failure to secure shareholder backing for the proposed acquisition of Banca Generali – widely viewed as a defensive strategy – has prompted analysts to reassess its ability to avoid a takeover.

Global Markets React to U.S. Tariff Ruling

Overnight, Asia-Pacific markets traded mixed, while U.S. stock futures were little changed. Investor sentiment remained cautious after a U.S. federal appeals court ruled that most of former President Donald Trump’s global tariffs were unlawful. The 7-4 ruling stated that only Congress has the authority to impose broad-based tariffs. Trump criticized the decision as “highly partisan” and vowed to appeal to the U.S. Supreme Court.

This development could weigh on U.S. markets in September, historically the weakest month for equities, with the S&P 500 averaging a 4.2% drop over the past five years.

Key Economic Data to Watch Today

European investors are closely monitoring the release of eurozone inflation data at 10:00 a.m. London time, along with Spain’s unemployment report later in the day.