FTSE 100 slips as banks weigh; defensive stocks limit decline
EWU•The FTSE 100 fell 0.8% to 10,680.25 points, with banks down nearly 2%, while healthcare and personal care, drug and grocery stocks rose. The FTSE 250 lost 1%.
1. Banks lead declines
The FTSE 100 declined on Tuesday as banks dragged and elevated oil prices weighed, while gains in defensive sectors cushioned the fall. The index was down 0.8% at 10,680.25 points by 1006 GMT; the FTSE 250 lost 1% and was on track for its biggest one-day fall in nearly two weeks. Banks fell nearly 2% to a more than four-month low, with HSBC, Lloyds and NatWest down between 1.6% and 2.3%. Industrial stocks lost 1.8%.
2. Sector moves and outlook
Brent crude reached a five-month high of $111.05 a barrel. Healthcare stocks rose 0.5% and personal care, drug and grocery stocks added 0.3%. British pay growth accelerated modestly, with signs of a small jobs-market recovery that could bolster the case for a Bank of England rate hike next month and pressure rate-sensitive midcaps.
3. Company and policy news
Bunzl slipped 2.2% despite reporting a 3.7% rise in third-quarter revenue and maintaining its annual forecasts. Anglo American dipped 1.6% after maintaining its 2026 copper production guidance despite a 5% drop in third-quarter output; Ocado rose 6.6% after J.P. Morgan raised its price target to 460 pence from 290 pence. Finance Minister John Healey reportedly rejected calls to raise capital gains tax ahead of the October 28 budget. Investors will watch UK inflation and retail sales data this week.
