The FTSE 100 surrendered earlier gains on Tuesday to trade roughly flat to slightly lower, dragged down by weakness in energy and mining stocks. Shell and BP fell 2% and 1.3%, respectively, as Brent crude slipped below $90 a barrel for the first time since August amid rising optimism over a potential resolution to the Middle East conflict. Gold miners Fresnillo and Endeavour were among the worst performers, losing around 3.5% and 4%. Major diversified miners Rio Tinto, Glencore, Anglo American, and Antofagasta also retreated, declining between 0.5% and 1.3%.
The broader commodities selloff followed stronger-than-expected US inflation data, which reinforced expectations of further Federal Reserve interest rate hikes and sent gold and silver down more than 2%, while copper fell over 1%. AstraZeneca eased 0.8%.
In contrast, Marks & Spencer rose more than 2.5% after reiterating its goal of cutting £600 million in costs by 2028 and unveiling plans to double its dividend this fiscal year. Bank stocks also held onto earlier gains.
