FX.co ★ FTSE 100 Little Changed on Tuesday

The FTSE 100 ended the trading day with little change, lagging behind its European counterparts. This was primarily due to a downturn in oil and gold stocks. Major oil companies BP and Shell experienced declines of 4.8% and 3.7%, respectively, following a decrease in crude oil prices. This drop in prices came after President Trump's announcement of a ceasefire between Israel and Iran, which, while reducing geopolitical risk, remains a tentative resolution. Additionally, gold mining companies, including Endeavour Mining and Fresnillo, saw decreases of more than 6% and 2%, respectively, reflecting a diminished demand for safe-haven assets. Defense contractor BAE Systems also saw its shares fall by over 4%, erasing gains previously driven by increased geopolitical tensions. Meanwhile, expectations for interest rate cuts escalated as Federal Reserve Chair Powell suggested that rate cuts could be implemented sooner if either inflation weakens or the labor market shows signs of deterioration. Similarly, Bank of England Governor Bailey and Deputy Governor Ramsden confirmed market expectations for potential rate reductions in the UK. Furthermore, the easing of oil prices contributed to alleviating inflation concerns. On a brighter note, airline stocks saw significant increases, with EasyJet and IAG each rising by over 6% as Gulf countries such as Qatar and the UAE reopened their airspace and resumed flight operations.