FX.co ★ UK Shares Fall on Tuesday

The FTSE 100 experienced a decline of 0.7% on Tuesday during its first session following a holiday, nevertheless, it fared better than its European counterparts amid a broader market downturn. The primary contributors to the decline were retailers, following downgrades from Deutsche Bank due to concerns regarding a slowdown in discretionary spending. Kingfisher's shares decreased by 4% and AB Foods saw a 3.5% drop as analysts cautioned that real wage growth is expected to decelerate, coinciding with rising unemployment concerns, which could signal reduced consumer demand in late 2025 and 2026. Conversely, Bunzl's shares rose by over 5% after the company reaffirmed its guidance, restarted its share buyback program, and alleviated investor concerns after issuing a profit warning in April. Analysts pointed out that this positive response was due to the shares having previously declined significantly prior to the update. On the subject of monetary policy, Catherine Mann of the Bank of England indicated that interest rates should remain unchanged.