The FTSE 100 Index Closes 0.16% Lower

The FTSE 100 Index dropped 17 points or 0.16 percent on Tuesday to close at 10722 points. Losses were led by Admiral (-3.39%), BT (-3.24%) and BAE Systems (-2.55%). Offsetting the fall, top gainers were Kingfisher (12.23%), Smiths (7.80%) and JD Sports Fashion (6.79%).

The FTSE 100 fell on Tuesday after a volatile session, reversing Monday’s 0.8% gain as caution prevailed amid uncertainty over efforts to restore energy flows through the Strait of Hormuz. Brent crude hovered near $100 a barrel, while President Donald Trump said he expected the US to reach a deal with Iran after the election and noted that oil flows had increased since the conflict began, with prices likely to fall sharply once it ends. Banks weakened, with HSBC down 1.4%, Barclays 0.9% and Lloyds 1.1%, while defence stocks Rolls-Royce and BAE Systems fell 1.4% and 2.6%, respectively. On the other hand, Kingfisher surged 12% after raising profit guidance on strong momentum at Screwfix, Poland and Iberia. Smiths Group gained almost 8% on higher revenue and growth expectations at John Crane and Flex-Tek. Meanwhile, a CBI survey showed factory orders at their highest level since July 2023, while August government borrowing reached £18.3 billion, above expectations of £15.5 billion.

The FTSE 100 attempted to extend its gains for a second session on Tuesday after rising 0.8% on Monday, as oil prices turned lower following a report that Iran could reopen the Strait of Hormuz if the US lifted its blockade of Iranian ports. Kingfisher led individual gainers, climbing more than 9% after raising its profit guidance on strong momentum at Screwfix and in Poland and Iberia. Smiths Group advanced around 6.5% after reporting higher revenue and highlighting expected second-half growth at John Crane, along with continued benefits from the data-centre boom at Flex-Tek. On the other hand, Shell and BP fell 1% and 2.4%, respectively. President Trump is due to address the UN General Assembly and may meet with Iran’s president. On the data front, a gauge of British factory orders rose this month to its highest level since July 2023, according to a CBI survey. Meanwhile, UK government borrowing reached £18.3 billion in August, above expectations of £15.5 billion.