The FTSE 100 Index Closes 0.30% Lower

The FTSE 100 Index dropped 32 points or 0.30 percent on Tuesday to close at 10792 points. Losses were led by Endeavour (-5.80%), Fresnillo (-5.33%) and Antofagasta (-5.22%). Offsetting the fall, top gainers were BP (5.66%), Reckitt Benckiser (4.68%) and Rentokil Initial (3.17%).

The FTSE 100 fell 0.4% on Tuesday, although it outperformed the Euro Stoxx 50. Mining stocks were among the biggest decliners, with Endeavour and Fresnillo dropping more than 5% each as gold and silver prices retreated. Higher expectations for future interest rates weighed on non-yielding precious metals, while Antofagasta and Anglo American also fell 5.4% and 3.8%, respectively. Rolls-Royce declined more than 4%. In contrast, energy stocks rallied strongly as oil prices climbed, with Shell and BP advancing 2.6% and 5.7%. Brent crude rose above $92 a barrel, reinforcing concerns that elevated energy costs could prolong inflationary pressures. Domestic data added to those concerns, as British Retail Consortium figures showed UK shop price inflation accelerating to a two-year high of 1.5% in August, while food inflation reached 2.8%. Meanwhile, Nationwide reported that UK house prices increased 0.2% in August, slightly faster than in July and ahead of expectations.

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.