The FTSE 100 Index Opens 0.69% Lower

The FTSE 100 traded more than 0.5% lower on Tuesday, after a 0.4% gain in the previous session, as rising oil prices and weak UK employment data weighed on sentiment. Banks were among the main decliners, with HSBC Holdings, Barclays and Lloyds Banking Group falling between 0.7% and 2.1%. Mining stocks also came under pressure as gold, silver and copper prices declined, with Rio Tinto, Glencore and Anglo American down 1.5%, 2% and 1.1%, respectively. UK payroll data showed that employers cut 26,000 jobs in August, following a revised 19,000 decline in July and significantly exceeding economists’ expectations for a 5,000 reduction. The figures highlighted continued weakness in the labour market ahead of Thursday’s Bank of England interest-rate decision. Despite the payroll decline, unemployment remained at 4.9% in the three months to July, while regular wage growth was unchanged at 3.5%.

The FTSE 100 Index is dropping 74 points. Leading the losses are Aberdeen Group (-3.00%), ICG (-2.30%) and Barclays (-2.03%). Top gainers were Kingfisher (1.60%), Marks & Spencer (1.27%) and JD Sports Fashion (1.10%).

The FTSE 100 rose 0.4% on Monday, outperforming other European markets as gains in oil stocks and the index’s defensive characteristics supported sentiment. Shell and BP each rose around 1%, with Brent crude moving back towards $107 a barrel after Saudi Arabia closed a major crude pipeline following attacks, disrupting an alternative route to the Strait of Hormuz. A planned meeting between Iran and several Gulf nations on establishing a temporary shipping corridor through Hormuz was also postponed, adding to supply concerns. GSK gained more than 4.5% after positive clinical data for its lung-cancer drug Jideytro, and AstraZeneca advanced around 3.8% despite a setback for its breast-cancer drug Etcamah, which failed to outperform standard treatment in a late-stage trial. Also, Unilever and BAT added 3% and 3.7%, respectively. Meanwhile, Legal & General rose around 1.3% after launching the second £600 million tranche of its share-buyback programme.