That's it from me. Head over to our US site for more market moving news.

Banking behemoth HSBC (HSBA.L) will shutter key parts of its investment banking business in the UK, US and Europe as it attempts to overhaul operations, the Financial Times reported, citing a memo.

The lender plans to keep debt capital markets, leveraged finance, real asset finance and infra finance in those markets, the report noted, citing someone familiar with the operation. The aim, now, is to focus on parts of the business that scale, it added.

Since the bank appointed Georges Elhedery as its new CEO last year, there has been an expectation of wide restructuring, which will also cut costs by reducing headcount of senior staff.

Nvidia's stock price has bounced already today, starting the session lower but recouping some of yesterday's losses by late-morning on the US east coast.

Tech watchers still don't quite know how seriously to take DeepSeek. Experts have urged caution over its potential use of customer data. Those that invested in AI stocks a year ago will still be sitting on healthy profit.

Axel Rudolph, senior technical Analyst at online trading platform IG, said:

Shares in car and bike parts retailer Halfords headed as much as 20% higher on Tuesday following a report of robust Christmas sales and a 2025 forecast ahead of analyst expectations.

A boost of 13.1$ in cycling in December helped results while the colder winter boosted the need for car parts.

"In recent months we have seen an improvement in trading alongside continued progress on a number of key initiatives, including our pricing and promotion strategies and cost reduction measures," the retailer said.

Oil prices ticked higher on Tuesday but remained close to a two-week low, weighed down by weak economic data from China and milder weather forecasts that dampened demand expectations.

Brent crude futures climbed 0.5% to $76.58 per barrel, while US West Texas Intermediate (WTI) crude rose 0.4% to $73.48 per barrel.

China, the world’s largest crude importer, reported an unexpected contraction in its manufacturing sector. The National Bureau of Statistics (NBS) manufacturing PMI for January fell to 49.1, down from 50.1 in December, missing market expectations. The dip in manufacturing activity has raised concerns about the future of global crude demand.

"The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China's oil demand outlook, may serve as a drag on oil prices," IG analyst Yeap Jun Rong said.

Shares in Nvidia (NVDA) plunged 17% on Monday, wiping $589bn (£473bn) off of the AI chipmakers market value, which marked the largest single-day loss in stock market history.

The chipmaker led a sell-off across chip stocks and the broader market, after advancements by China's AI DeepSeek app sparked concerns about the level of spending in the space in the US.

DeepSeek develops open-source large language models and its app has been climbing up the download charts, with the company launching its R1 model last week.

The start-up claims that the new model offers "performance on-par" with the OpenAI o1 model. DeepSeek also said that its AI assistant runs off lower cost chips and uses less data than leading models.

This prompted the heavy selling of shares that have been boosted by the AI boom, namely chip stocks. In addition to Nvidia (NVDA), Broadcom (AVGO) tumbled 17%, while the Taiwan Semiconductor Manufacturing Company's (2330.TW, TSM) US-listed shares ended Monday's session 13% in the red.

Neil Wilson, analyst at TipRanks, said that Nvidia's (NVDA) fall on Monday was "not to be sniffed at when we look at exposures and margin debt, though analysts seem to generally be of the opinion that the move in the stock yesterday was overdone and is a 'buying opportunity'. Expect a bounce back."

Coffee shop chain Starbucks (SBUX) rolled out a number of changes in the US and Canada on Monday, ahead of the release of its latest results.

This included clamping down on how its coffee shops were being used, emphasising that they are for use by partners and customers, in a statement on its website.

Other changes that came into place were the return of free refills of hot brewed or iced coffee for those customers sitting in its shops.

This comes as the company's CEO Brian Niccol focuses on its Back to Starbucks plan, after consecutive quarters of disappointing results.

Shares in the coffee shop chain were flat in pre-market trading on Tuesday, ahead of the release of the company's results due out later in the day.

Russ Mould, investment director at AJ Bell, said:

Pedro Goncalves writes:

Gold prices showed a mixed performance on Tuesday as investors adopted a cautious stance ahead of the Federal Reserve's upcoming interest rate decision.

The spot price of gold rose slightly by 0.1%, reaching $2,740.07 per ounce, while gold futures remained flat at $2,738.30.

The precious metal had gained nearly 3% last week, driven by Trump’s calls for rate cuts and expectations of a gradual imposition of US tariffs.

“Although renewed USD strength this morning following escalation between the US and Colombia is providing some headwinds to gold in early morning trading,” ING analysts said in a note.

A stronger dollar typically drives gold prices lower because it makes the metal costlier for buyers using other currencies.

The dip in gold prices comes amid a broader market shift, with investors reallocating capital into defensive equity positions. This rebalancing was partly triggered by growing interest in China’s AI startup DeepSeek.

"This sell-off is very much driven by the broad equity market rather than just the normal interest rates or currency dynamics," said Bart Melek, head of commodity strategies at TD Securities. “We're seeing a bit of a liquidity crunch.”

Asian stocks were on edge in trading hours on Tuesday following a tech rout which dragged major US indices lower.

Japan's technology firms were among the biggest losers in the MSCI Asia Pacific Index, which fell 0.6%, following China's DeepSeek shock.

Many bourses — including China, South Korea and Taiwan — were closed for the lunar new year.

The average monthly price being paid for rental accommodation fell 0.2% for properties outside of London in January, according to new data by property platform Rightmove (RMV.L), slightly easing the cost of living burden that has plagued the real estate market.

In the capital, however, average advertised rents in London continue to rise, reaching a 13th consecutive quarterly record of £2,695 per calendar month (pcm), however the increase is only 0.1% this quarter.

Supply in the rental market continues to increase, with the number of available rental properties now 13% higher than at the same time last year, improving the balance of supply and demand, Rightmove said.

The number of prospective tenants looking to move has also dropped by 16% versus last year, however, the average number of applications per rental property is still in double digits at 10.

US stocks made muted moves in premarket trade, as investors hold their breath for more earnings.

From our US team:

The Nasdaq tanked on Monday as a Chinese startup rattled faith in US leadership and profitability in AI, taking a hammer to Nvidia (NVDA), wiping out a record $589bn in market value. The Nasdaq Composite (^IXIC) sank more than 3%, while the S&P 500 (^GSPC) dropped nearly 1.5%.

The blue-chip Dow Jones Industrial Average (^DJI), which is less dependent on tech stocks gained more than 0.6%, as investors flocked to more defensive sectors.

Shares of Apple (AAPL), Meta (META), and software giant Salesforce (CRM) also bucked the tech rout.

The Nasdaq and S&P 500 were rattled by claims by China's DeepSeek that its AI assistant uses cheaper chips and less data than leading models, but performs equally well. A surge in DeepSeek's popularity has spurred investors to question bets that AI demand-driven growth will keep fuelling gains for stocks.

AI bellwether Nvidia's shares plunged nearly 17% as chip-related names took a bruising.

Hi again! Lucy Harley-McKeown here, gearing up to bring you the market moving news of the day.

Today, UK chancellor Rachel Reeves is meeting with CEOs to try to smooth some of the aftermath of the budget.

The Bank of England will also release capital issuance data.

Companies reporting today include:

• LVMH (MC.PH)

• SAP (SAP)

• Boeing (BA)

• Lockheed Martin (LMT)

• Chubb (CB)

• Starbucks (SBUX)

• General Motors (GM)

• Pets at Home (PETS.L)