The FTSE 100 declined on Tuesday, extending losses after a 0.7% drop in the previous session, as investors weighed the appointment of John Healey as chancellor, a new batch of UK economic data, and softer oil prices. Healey, formerly defence secretary, was named to the post by Prime Minister Andy Burnham after markets closed on Monday. Burnham has pledged to cut household energy bills by scrapping the Digital ID programme.
On the data front, public sector borrowing in June came in lower than expected, while labour market figures were broadly in line with forecasts, with wage growth easing slightly in the three months to May.
Energy stocks weakened as Brent crude slipped below $89 per barrel, dragging Shell and BP lower. AstraZeneca and GSK also retreated, losing around 0.6% to 0.8%, while Unilever, BAT, and Polar Capital traded in negative territory.
By contrast, miners outperformed, with gains led by Antofagasta, Glencore, Anglo American, Rio Tinto, Fresnillo, and Endeavour. Defence names were also stronger, as Babcock, BAE Systems, and Rolls-Royce all recorded solid advances.
