Key facts
- The FTSE 100 closed Tuesday down 39 points at 10,658.13.
- The FTSE 250 slipped back into negative territory, falling 8 points to 23,826.
- US markets opened lower on Tuesday, with the Dow Jones down 0.23% and the S&P 500 down 0.10%.
- Brent crude rose 1.94% to $107.73 a barrel.
- Santander won an appeal against a London court ruling that had ordered it to pay about £677 million to French insurer AXA.
- UK inflation rose to 3.1% in August.
London stocks experienced pressure on Tuesday, with the FTSE 100 closing lower as rising oil prices and bond yields weighed on sentiment ahead of the US Federal Reserve's interest rate decision. The FTSE 100 finished down 39 points at 10,658.13.
Heavyweight investment banks and brokerages were among the biggest drags on the FTSE 100, with Standard Chartered falling 1.7% and Aberdeen dropping 2.6%. The FTSE 250 also slipped back into negative territory, falling 8 points, or 0.03%, to 23,826.
US markets opened lower on Tuesday, with the Dow Jones down 118 points, or 0.23%, at 52,303, and the S&P 500 down 7.7 points, or 0.10%, at 7,612. The weaker open reflected higher oil prices, rising Treasury yields, and uncertainty over the outlook for AI demand.
Brent crude edged higher, rising $2.05, or 1.94%, to $107.73 a barrel, as attacks on Saudi Arabia and the shutdown of a key pipeline heightened concerns over global supplies. Sterling fell 0.14% to $1.3481.
In a separate development, Reuters reported that Santander won an appeal against a London court ruling that had ordered it to pay about £677 million to French insurer AXA over costs linked to the mis-selling of payment protection insurance in the US. London’s Court of Appeal overturned last year’s High Court judgment.
On Wednesday, the FTSE 100 rose 70 points to 10,728.95 and the FTSE 250 gained 222 points to 24,041, with US stocks also opening higher. This advance came despite UK inflation rising to 3.1% in August, with easing oil prices and stabilising bond yields supporting sentiment.