FTSE 100 slips around 0.4% as energy and inflation concerns weigh
The FTSE 100 fell around 0.4% on Tuesday, underperforming a broadly weaker Europe tape. Gains in Shell and BP were offset as Brent climbed above $90 and UK shop price inflation hit 1.5% year-on-year in August.
The FTSE 100 fell around 0.4% on Tuesday, lagging a broadly weaker European market as gains in oil majors Shell and BP were offset by declines elsewhere. Brent crude climbed above $90 a barrel, stoking concerns that persistent energy costs could keep inflationary pressures elevated. Latest BRC data showed UK shop price inflation rising to its highest level in two years, with prices up 1.5% year on year in August and food prices increasing 2.8%. UK house prices rose 0.2% in August, a little faster than in July and above expectations, according to Nationwide.
Merger and acquisition activity also stayed 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 about 940 pence per share in cash.