The FTSE 100 reversed course on Tuesday, sliding more than 0.5% to its lowest level in over two weeks and underperforming other major European indices, as weakness spread across several key sectors. Oil producers were among the heaviest laggards, with Shell down 1.5% and BP off 2.1% as Brent crude retreated toward $104 a barrel.
Water utilities also faced selling pressure after Andy Burnham set out proposals for greater public involvement in the industry, including enhanced powers for local mayors and tighter controls on executive bonuses. Shares in United Utilities and Severn Trent both declined.
The banking sector softened as well, with HSBC, Barclays and Lloyds Banking Group each shedding around 0.5% to 0.7%, while AstraZeneca slipped 0.7%. Providing a rare bright spot, InterContinental Hotels Group rose about 2%, supported by lower oil prices that helped lift sentiment across the wider travel sector.
