The UK’s FTSE 100 benchmark stock index edged lower on Tuesday, weighed down by declines in energy and copper mining stocks. By 0708 GMT, the blue-chip FTSE 100 index had slipped by 0.2%, after reaching its highest level since early August on Monday. Meanwhile, the mid-cap FTSE 250 index was up by 0.1%.
Energy shares were the biggest drag on the FTSE 100, declining by 1% as oil prices dropped. Major players in the sector, Shell and BP, both saw their shares fall by about 1%. The drop in oil prices was influenced by Israel’s acceptance of a proposal aimed at resolving disagreements blocking a ceasefire deal in Gaza, easing concerns over supply disruptions in the Middle East.
Real estate and real estate investment trusts also struggled, each down by 0.2%, after gains on Monday. Industrial metal miners dipped by 0.3% as copper prices fell on short-covering, following a rally in the previous session. Chilean miner Antofagasta saw a marginal gain after reporting a 5% increase in half-year profit.
On the positive side, precious metal miners gained 0.5%, with gold prices holding steady near record highs.
Investors are now turning their attention to Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole economic symposium later this week. Powell is expected to address the possibility of a September interest rate cut, with recent comments from Fed officials and economic data supporting expectations for a near-term reduction. Additionally, markets are watching the Purchasing Managers Index (PMI) numbers in the UK and U.S., along with the minutes from the Fed’s last meeting, in what is otherwise a light week for data.
Wood Group, an oilfield services and engineering firm, saw its shares slip by 1% despite reporting an 8.5% increase in first-half adjusted core earnings.