FTSE 100 Slips as Bailey Flags Inflation Risks While Copper Miners Rally

Facebook X LinkedIn WhatsApp Pocket Messenger Telegram London stocks ended lower on Tuesday as investors weighed fresh inflation warnings from Bank of England Governor Andrew Bailey against rising energy and commodity prices. The FTSE 100 closed 10.47 points, or 0.1%, lower at 10,811.66, while the FTSE 250 dropped 157.83 points, or 0.6%, to 24,348.85. The AIM All-Share declined 0.3% to 796.75. Bank of England Governor Andrew Bailey told Parliament's Treasury Committee that global inflation risks remain skewed to the upside, with elevated energy prices presenting a particular threat. Bailey said market expectations for around three UK interest rate increases over the next 12 months appeared reasonable given the current outlook. Energy remained at the centre of investors' concerns. Brent crude traded at $98.00 a barrel around the London close, compared with $97.89 on Monday, having reached an intraday high of $99.46. Oil prices were supported by escalating Middle East tensions after Iran-aligned militants in Yemen attacked energy facilities in Saudi Arabia, temporarily disrupting some operations. The stronger oil price helped BP rise 0.7% and Shell gain 0.5%. Computacenter was the FTSE 100's worst performer, tumbling 9% despite initially jumping as much as 6.8%. The technology services group reported a near-doubling of first-half profit alongside a 72% increase in revenue, benefiting from strong spending on data centres and AI-related infrastructure. The shares have been among the strongest performers in London over the past year, however, having more than doubled over the previous 12 months. Smith & Nephew also weakened, falling 2.3% after launching a cash tender offer of up to $250 million for bonds due in 2030. Mining stocks provided some support as copper continued to trade around exceptionally strong levels. Antofagasta surged 4.7%, Glencore gained 4.1% and Anglo American also advanced, while FTSE 250-listed Atalaya Mining climbed 3.4%. Among the mid-caps, Goodwin plunged 23% following a Financial Times report that Cerberus was nearing a £1 billion deal involving the company's defence business. Dunelm dropped 14% after publishing annual results and unveiling a new three-year growth plan. The home furnishings retailer said unusually hot UK weather had resulted in significantly weaker sales during the first six weeks of its 2027 financial year, although trading subsequently improved as temperatures cooled. Dunelm is targeting £100 million of cost reductions but expects to spend between £30 million and £40 million over the next two years strengthening its underlying infrastructure. There were several significant moves among London's smaller companies. GreenRoc Strategic Materials soared 54%, while AI diagnostics specialist Renalytix jumped 30% as trading in its shares resumed following a fundraising. Cambridge Nutritional Sciences moved sharply in the opposite direction, falling 24% after swinging to a £4.4 million pretax loss for the year ended 31 March, compared with a £1.6 million profit previously. The result included a £3 million goodwill impairment. On an adjusted EBITDA basis, Cambridge Nutritional moved from a £400,000 profit to a £400,000 loss as challenging market conditions prompted restructuring. Sterling strengthened to $1.3548 from $1.3516 on Monday and rose against the euro to €1.1643. The Japanese yen also continued its recent recovery, with the dollar falling to ¥154.18 compared with ¥154.33 on Monday and around ¥160 at the beginning of September. Wall Street was weaker following its return from the Labor Day holiday. The Dow Jones Industrial Average fell around 1%, while the S&P 500 declined 0.3% and the Nasdaq Composite slipped 0.1%. US Treasury yields edged higher, with the 10-year yield at 4.80% and the 30-year at 5.25%. Meanwhile, the Federal Reserve Bank of New York's latest consumer survey showed three-year US inflation expectations easing to 3.2%, while one-year expectations remained at 3.6% and five-year expectations held at 3.0%. Expectations of a deterioration in the labour market increased, with the perceived probability of US unemployment being higher in a year's time rising to 44.4% – its highest level since April 2020. Gold strengthened sharply to $4,494 an ounce, compared with $4,412.10 on Monday. On the UK corporate calendar, Energean, Gym Group and WAG Payment Solutions are scheduled to report half-year results, while Frontier Developments and Pan African Resources are due to publish full-year figures. If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned Facebook X LinkedIn WhatsApp Pocket Messenger Telegram