The FTSE 100 fell more than 0.5% on Tuesday, reversing a 0.4% gain from the previous session, as rising oil prices and weak UK labour market data dampened risk appetite. Banks were among the biggest losers, with HSBC Holdings, Barclays and Lloyds Banking Group down between 0.7% and 2.1%. Mining stocks also retreated as gold, silver and copper prices slipped, dragging Rio Tinto, Glencore and Anglo American lower by 1.5%, 2% and 1.1%, respectively.
Official payroll figures showed that UK employers cut 26,000 jobs in August, following a revised 19,000 drop in July and far exceeding economists’ expectations for a 5,000 decline. The data underscored persistent softness in the labour market ahead of Thursday’s Bank of England interest rate decision. Despite the fall in payrolls, the unemployment rate held at 4.9% in the three months to July, while regular pay growth remained steady at 3.5%.
