FTSE 100 closed lower as sterling gained ground and Wall Street shares are mixed.
Britain's blue-chip index finished over 26 points down at 7,030, while FTSE 250 also closed in the red, down over 62 points at 19,398.
The pound is up 0.36% against the Euro at the time of writing, while it is up 0.07% against the US dollar.
On Wall Street, the S&P 500 is down 1.95% or 51 points but the Dow Jones is 97 points ahead.
Analyst at CMC Markets David Madden said traders were under the influence of wide economic and political tensions.
"As of yesterday China has started imposing tariffs on a number of US goods, and the feeling that we are now in a trade war is still on the back of investors' minds," he suggests.
Top loser on Footsie was Mediclinic International Plc (LON:MDC), down 4.59% to 573.40p, as traders took profits after the recent rally.
The firm last week named its new chief executive as Dr Ronnie van der Merwe, who will succeed Danie Meintjes, who announced last year that he would be stepping down after serving for eight years.
3:35pm: FTSE 100 looks set to close on back foot after fleeting positivity wanes
The FTSE 100's positivity was fleeting, and with about an hour to go before the close the index was again lit in red.
Changing hands at 7,020 the benchmark was down 36 points or 0.5%.
"Tuesday has been a bit of an odd one, a laggy session of trading dictated by the European markets playing catch-up with Monday's Bank Holiday-ignoring action in the US," said Connor Campbell, analyst at Spreadex.
"Wednesday, then, may act as something of a clean slate - especially if Trump keeps his Twitter-focus on Amazon, not China - though a lack of other news means there is the risk that the current trade war concerns will remain at the front of investors' minds."
The FTSE 100 marked positive territory later into Tuesday afternoon, with sentiments supported by improved trading on Wall Street.
London's blue-chip benchmark was up 8 points or 0.1% changing hands at 7,063.
The Dow Jones started its recovery strongly, climbing 157 points or 0.67% to 23,801 while the S&P 500 and Nasdaq rose 0.45% and 0.49% respectively.
Elsewhere, it was a good day for cryptocurrency traders as the price of Bitcoin gained US$294 or 4.18% to US$7,344.
The FTSE 100 remained on the back foot into early afternoon trading, down just a couple of points, 0.04%, changing hands at 7,055.
Sentiments continue to be weighed down by worries over international trade disputes and weakness in US tech stocks.
Wall Street benchmarks pointed higher ahead of Tuesday's open.
"US futures are up to half a percentage point higher on Tuesday, but this pales in comparison to the losses recorded on Monday and reflects ongoing weakness in stocks," said Craig Erlam, analyst at online broker Oanda.
"Donald Trump's attacks on Amazon over the weekend put the spotlight back on the tech sector, as it tries to recover from the Facebook data scandal that threatens more regulation. Pressure on the sector doesn't appear to be going away in the near-term which will continue to act as a drag on indices.
"The threat of a trade war between the US and China is also weighing heavily on market sentiment and isn't showing any sign of easing up."
The Dow Jones is indicated 113 points higher at 23,668, which while positive, remains some way shy of yesterday's heavy losses. The S&P 500 and Nasdaq were, meanwhile, also seen higher with just over an hour until the opening bell.
In the wake of Monday's tech sell off, there could probably be a better time for streaming music group Spotify to float its shares on the New York Stock Exchange - it's long awaited and much hyped IPO finally goes ahead today, with the placing price set at US$132 per share.
By lunchtime, the FTSE 100 had recovered most of Tuesday morning's losses, albeit the index remained in negative territory.
The blue-chip benchmark was changing hands at 7,041, down 13 points or 0.18%.
A boost came from better-than-anticipated UK manufacturing stats, in turn helping out the pound - which, as one analyst noted, is now pitched above key technical markers.
The measure of manufacturing activity was up to 55.1 for the month of March, ahead of the consensus forecast for 54.7 and slightly better than the 55 set in the preceding month.
"Given that 2 of the past 3 prints for this indicator have missed forecasts, the beat is all the more pleasing although traders will likely look more to Thursday's services equivalent in attempting to gauge the strength of recent economic activity," said David Cheetham, market analyst at online forex broker XTB.
Looking back to stocks, big cap miners were moving positively. Rio Tinto PLC (LON:RIO) shares rose 32p or 0.89% to trade at 3,643, while BHP Billiton PLC (LON:BLT) gained 5p or 0.4% to 1,409p. Glencore PLC (LON:GLEN) gained 0.64% to 356p.
More notably, South32 Ltd (LON:S32) advanced around 2% to 179.6p.
For Anglo American PLC (LON:AAL), a project setback in Brazil set a different tone to the rest of the sector. A leak in a pipeline at the Minas Rio mine caused a 90-day suspension of the ramp-up.
"The ramp-up at Minas Rio continues to hobble along," RBC analyst Tyler Broda said in a note.
"The impact is difficult to judge considering any remedial actions are as yet unknown, which could hamper restart and ramp-up timing, as well as any associate costs."
Anglo shares were down 4.2% changing hands at 49.78p.
Oil majors BP PLC (LON:BP) and Royal Dutch Shell PLC (LON:RDSB), shares both moved higher - gaining 0.44% and 0.34% respectively.
Elsewhere, exploration and production oil stocks were on the back foot.
Tullow Oil PLC (LON:TLW) shares dropped 4.75p or 2.42% to trade at 191.2p. Enquest PLC (LON:ENQ) and Premier Oil PLC (LON:PMO) shed 2.3% and 1.3% respectively, and Cairn Energy PLC (LON:ENQ) dipped 0.78% to 204.4p.
There is no apparent release of pressure for the FTSE 100 which, on the back foot, continues to see selling. Trading at 7,003, the blue-chip benchmark of 100 stocks is down 53 points or 0.75% for the day so far.
Whilst the mood is generally overcast, for certain consumer-facing stocks, the outlook is downright drizzly, according to one stockbroker.
"A wet Easter weekend for much of the country will have been unhelpful to retailers, pubs and restaurant operators," said Russ Mould, investment director at AJ Bell.
"With many people enjoying four straight days of relaxation, the thought of venturing outside into the rain to go shopping or get a bite to eat may have seemed unappealing."
He added: "You have to consider that a sunny Easter weekend has historically been a strong sales driver. Many troubled consumer-facing companies will have been desperate for the weather to be on their side this Easter. Alas, grey skies may have simply added to their woes."
In retail, Marks and Spencer Group PLC (LON:MKS) was down 2.9p or 1.07% trading at 267,31p on Tuesday morning.
High Street department store operator Debenhams PLC (LON:DEB) was worse off, losing 1.87% to 20.49p.
Costa Coffee owner Whitbread PLC (LON:WTB) was 1.62% lower at 3,640p, while Primark parent Associated British Food PLC (LON:ABF) lost 1.45%.
Next PLC (LON:NXT) dipped 0.76% to 4,724, while Sports Direct International PLC (LON:SPD) and JD Sports Fashion PLC (LON:JD) were respectively 1.14% and 0.45% lower.
Supermarket stocks Tesco PLC (LON:TSCO), J Sainsbury PLC (LON:SBRY) and WM Morrison Supermarkets PLC (LON:MRW) shed 1.37%, 1.93% and 0.74% respectively.
Pub group Greene King PLC (LON:GNK) lost 1.17% to change hands at 465.9p, while Marston's PLC (LON:MARS) and Mitchells & Butlers PLC (LON:MAB) in turn fell 1.12% and 0.72%.
JD Wetherspoon PLC (LON:JDW) and London brewer Fuller, Smith & Turner PLC (LON:FSTA), meanwhile, bucked the trend to rise 0.53% and 0.33% respectively.
Changing hands at 7,014, the FTSE 100 was down 35 points or 0.5% through Tuesday's early deals as investors played catch up from the long Easter bank holiday weekend.
As anticipated, UK investors are reacting to the reignited trade skirmish between Trump's United States and China.
"The Easter break did little for the European markets, with a blanket-red open following Monday's post-China tariff announcement dive from the Dow Jones," said Connor Campbell, analyst at Spreadex.
He added: "The FTSE plunged 0.7% as it desperately tried to keep its head above 7000, a level that it had finally re-crossed during the pre-Easter run-in, a time when investors' concerns over a potential trade war had begun to ease."
Skin health specialist SkinBioTherapeutics PLC (LON:SBTX) has granted access to its proprietary SkinBiotix technology to a major, global consumer goods company in a deal that could lead to a commercial arrangement.
Cradle Arc PLC (LON:CRA) is to accelerate the development of Mowana in Botswana to get the copper mine into profit more quickly.
HemoGenyx Pharmaceuticals PLC (LON:HEMO) has announced the appointment of Sir Marc Feldmann as its new executive chairman with effect from 9 April 2018.
Corero Network Security PLC (LON:CNS) said it has secured several new orders for its cybersecurity technologies to the tune of US$1.2mln. The AIM-listed cybersecurity firm said the orders included two for its SmartWall Threat Defense technology with a cloud-based web development customer and a digital enterprise customer, worth US$0.3mln and US$0.2mln respectively.
Motif Bio PLC (LON:MTFB, NASDAQ:MTFB) has initiated a rolling submission of a new drug application to the US Food & Drug Administration for iclaprim.
Environmental authorities in Botswana have granted permission for drilling on an additional 680 square kilometres of ground on the T3 Dome, jointly held by MOD Resources and Metal Tiger PLC (LON:MTR). The established open pit resource at T3 already looks likely to be able to support production of 21,800 tonnes of copper per year over a ten-year life.
United Oil & Gas PLC (LON:UOG) has announced the extension of an option over the right to purchase an additional farmed interest in the Corallian Energy Limited interests in its southern UK oil and gas assets. The LSE main market-listed oil and gas exploration and development company pointed out that the option, which expired at the end of March 2018, has been renewed to the end of April 2018 on the same terms whilst the company awaits the transfer of the assigned initial interest from the UK Oil and Gas Authority, which is imminent.
Savannah Resources PLC (LON:SAV) is raising ?2.1mln in new money, ?1.5mln of which has been received following a subscription for shares, and ?565,000 of which has been pledged by a major shareholder in a Letter of Intent. The company will use the money to progress with its three main projects.
MySQUAR Limited (LON:MYSQ), the Myanmar-language social media, entertainments and payments platform operator, said in its interim results statement that there had been no "substantive progress" made in relation to the preliminary takeover approach it received in early January.
Scancell Holdings PLC (LON:SCLP) has signed an agreement with The PolyPeptide Group for the manufacture of its first Moditope anti-cancer platform, Modi-1-AMPLIVANT.
Silence Therapeutics PLC (LON:SLN) is embroiled in another patent battle with Alnylam Pharmaceuticals Inc., this time in Portugal against its Patisiran product. In a statement, the AIM-listed drug discovery firm said that it brought the patent infringement proceedings in Portugal yesterday against Alnylam after the US firm on 29 March filed a Declaratory Judgement (DJ) against Silence Therapeutics PLC and its Silence Therapeutics Gmbh subsidiary in the US federal district court in Boston, Massachusetts, USA.
Genedrive PLC (LON:GDR) has said it will premiere its HCV ID Kit in the Asia-Pacific (APAC) region on 2-4 April 2018. The AIM-listed diagnostics company said the kit would make its debut at the MEDLAB Asia Pacific Exhibition & Congress in Singapore.
Advanced Oncotherapy PLC (LON:AVO) said its partner company, Yantai CIPU, has extended distribution negotiations with a major Chinese medical and pharmaceutical company. The AIM-listed cancer treatment developer said negotiations between Yantai and the Chinese distributor, conducted through Yantai's affiliate entity Liquid Harmony, would continue past the originally announced date of 31 March 2018.
Action Hotels PLC (LON:ACHG) has agreed an unsecured US$15mln loan with related group EBLA Computer Consultancy.
Atlantis Resources Limited (LON:ARL), a global leader in the renewable energy sector, announced that following the formal launch of its proposed five-year bond through Abundance Investment Limited, investor commitments have now passed ?3.0mln, exceeding the minimum threshold of ?2.0mln. The company said it has also extended the offer to investors which will now remain open until 30 April 2018.
US Oil & Gas PLC (USOP) has contracted a rig for a planned drill programme in Nevada. In a statement released after market close on March 29, the explorer said it had signed up Capstar drilling (a unit of Oil States International Inc) for up to two wells (Eblana-3 and Eblana-6).
Providence Resources PLC (LON:PVR) told investors it has secured an extension to the frontier exploration licence hosting the Newgrange prospect, off Ireland's west coast. The Irish authorities have now extended the first phase of the licence, out to March 2019, to allow more time for the acquisition of new 3D seismic data over the crest of the Newgrange target.
Diversified Gas & Oil PLC (LON:DGOC) told investors that it has completed the CNX Gas Company acquisition and at the same time updated on its dividend policy. The addition of the CNX assets means that the group's production profile now yields more than 28,000 barrels oil equivalent per day, and the group's reserves base now amounts to some 173mln barrels oil equivalent.
Asiamet Resources Ltd (LON:ARS) has delivered more high grade copper intercepts at its BKM copper project in Indonesia. Asiamet remains on track to complete a feasibility study at BKM by mid-year.
W Resources has commenced earthworks at the La Parrilla tungsten mine in Spain, following the completion of financing in February. A structural steel contract is likely to be awarded this month, as construction gathers pace.
Metminco LTD (LON:MNC) ended 2017 with just over A$850,000 in the bank, following the sale of its interest in the Los Calatos copper project and the completion of a feasibility study for the Miraflores gold project in Colombia. Miraflores looks likely to support production of 421,000 ounces of gold over a 9.3 year life.
Caledonia Mining Corporation PLC (LON:CMCL) (TSX:CAL) has maintained its quarterly dividend of 6.875 US cents on each of the company's common shares. It said it is expected that the current dividend of 27.50 US cents per annum, paid in equal quarterly instalments, will be maintained.
The FTSE 100 is expected drop back in early trade on Tuesday, returning from the long Easter holiday weekend cautiously following an overnight plunge on Wall Street after another sell-off in tech stocks and amid renewed global trade war worries.
Spread betting firm IG currently expects the FTSE 100 index to open around 36 points lower at 7,021, having gained 11.87 points in its previous session last Thursday.
Overnight in New York, the Dow Jones slumped by nearly 459 points to close at 23,664 as tech stocks suffered again after President Trump launched another Twitter broadside against online retail giant Amazon.com Inc (NASDAQ:AMZN) over its US postal contract.
Meanwhile, the Trump-initiated trade war rumbled on, with China increasing tariffs by up to 25% on 128 US products, from frozen pork to wine and certain fruits and nuts, escalating a dispute between the world's two biggest economies in response to US duties on imports of aluminium and steel imposed last month.
Asian markets were slightly steadier today, however, more modestly lower, thanks to underlying strength in commodity prices.
On currency markets, the pound was a touch higher versus the dollar and the euro ahead of the latest round of UK purchasing managers indexes, kicking off this morning with the March manufacturing survey.
On Monday, a private survey showed China's manufacturing activity expanded at its weakest pace in four months in March as export demand faltered, prompting companies to shed staff more quickly as they looked to cut costs.
The week's key economic data, however, comes on Friday, when economists expect the US non-farm payrolls report to show employers added 185,000 jobs in March after a better-than-forecast 313,000 in February.
The unemployment rate is anticipated to fall to 4.0% from 4.1% while average hourly earnings growth is projected to accelerate to 2.7% year-on-year from 2.6%.
A strong labour market prompted the Federal Reserve to raise interest rates in March so the US central bank is likely to be closely monitoring the latest jobs data.
On the corporate front, in the absence of much scheduled news, the outcome of the takeover battle for engineering giant GKN PLC (LON:GKN) will remain a topic of interest.
Late last Thursday, predator Melrose PLC (LON:MRO) declared a narrow victory in its bitter battle with GKN after receiving valid acceptances for its offer representing approximately 52.43% of the FTSE 100-listed firm's voting rights.
The FTSE 250-listed turnaround specialist narrowly clinched the deal, having reduced the acceptance condition for its final ?8bn cash and shares offer for GKN to 50% plus one share. The group said its offer is now expected to become unconditional by April 19.
Significant events expected on Tuesday April 3:
Trading update: BTG PLC (LON:BTG), Renew Holdings PLC (LON:RWH)
Finals: Akers Biosciences Inc (LON:AKR) (NASDAQ:AKER), Menhaden Capital PLC (LON:MHN)
Economic data: UK manufacturing PMI survey; US ISM manufacturing index; US construction spending