The FTSE 100 Index Opens 0.50% Lower

The FTSE 100 fell around 0.4% on Tuesday, underperforming a broadly weaker European market as gains in oil majors Shell and BP were outweighed by declines elsewhere. Brent crude climbed above $90 a barrel, adding to concerns that persistent energy costs could keep inflationary pressures elevated. Domestically, the latest BRC data showed UK shop price inflation accelerating to its highest level in two years, with prices rising 1.5% year-on-year in August and food prices increasing 2.8%. Meanwhile, UK house prices rose 0.2% in August, slightly faster than in July and ahead of expectations, according to Nationwide. Merger and acquisition activity also remained in focus. Telecoms company Gamma Communications received a takeover proposal from UK private-equity firm Epiris, while FTSE 250-listed Bodycote agreed to a £1.65 billion acquisition by US investment firm Veritas Capital after a competitive bidding process, with shareholders offered around 940 pence per share in cash.

The FTSE 100 Index is dropping 54 points. Leading the losses are Endeavour (-4.64%), ICG (-3.91%) and Rolls-Royce (-3.75%). Top gainers were Reckitt Benckiser (5.34%), BP (3.53%) and Bunzl (2.01%).

The FTSE 100 Index gained 22 points or 0.20 percent on Friday to close at 10815 points. Gains were led by Investec (2.95%), SSE (2.62%) and HSBC Holdings (1.73%). Biggest losers were BAE Systems (-2.92%), Babcock International (-2.36%) and Airtel Africa (-2.12%).