Insurers, Spirax drag down UK's FTSE 100 index
SPY•Spirax, Legal & General and other movers
- Spirax SPX.L shares fell 6%, becoming the biggest decliner in the FTSE 100, after the company maintained its annual forecast despite a rise in first-half results.
- Shares of Legal & General LGEN.L dropped 4.4% after UBS and Goldman Sachs downgraded the stock to "sell" from "neutral." UBS pointed to peak valuations, lower margins from its pension risk transfer business and a falling solvency ratio among the reasons for the downgrade. Goldman warned the company's new gilt-heavy business strategy offered optionality at the expense of margins and earnings visibility.
- An index of FTSE 350 insurers .FTNMX303010 dropped 2.6%, with shares of Standard Life SDLF.L and Prudential PRU.L also coming under pressure.
- Global stocks too fell as oil prices rose after negotiations between the United States and Iran over a peace deal and the reopening of the Strait of Hormuz hit an impasse.
- Investors are awaiting U.S. inflation data later in the day as well as second-quarter UK GDP data on Thursday to gauge the monetary policy outlook on both sides of the Atlantic.
- British consumers spent more on food and in pubs last month on the back of England's run to the World Cup semi-finals and hot weather boosted clothing sales, but they remained wary of big outlays, according to surveys published on Tuesday.
- The British Retail Consortium's total retail sales measure rose by a below-average 1.3% from July 2025, slowing from 1.9% in June.
- Among other movers, IWG IWG.L dropped 1.9% after Jefferies warned of cash flow headwinds even as the office space provider maintained its annual and medium-term targets.
- InterContinental Hotels Group IHG.L slipped 1.3% as room revenue growth slowed in the second quarter as a sharp decline in the Middle East offset continued gains in the United States and China.
