London stocks slip as oil-driven inflation fears weigh on FTSE 100

Traders Union
All News
Stocks
London stocks slip as oil-driven inflation fears weigh

Highlights

FTSE 100 falls as crude prices rebound over 1.5%, reinforcing inflation concerns and expectations of a 25-basis-point Bank of England rate hike Thursday.
Aerospace, defence and industrial metal miners drop sharply, with Rolls-Royce, Relx down over 1.6%, Anglo American off 2.8%, and gold miners falling nearly 2.7%.
Drax Group jumps 9% on new data centre partnership, Hiscox climbs 3% after 9.5% premium growth, while AB Foods slips 3% on weaker profit outlook.

Oil rebound and policy focus pressure markets

As reported by Reuters, London's blue-chip index is retreating as crude prices rebound more than 1.5%, reversing part of Monday's 7% drop after an Iranian official says a deal to end the war remains far off.

Higher oil prices are reinforcing inflation concerns across markets, keeping pressure on central banks that have already raised interest rates. The Bank of England is widely expected to deliver a 25-basis-point rate increase on Thursday, while investors are also watching the U.S. midterm elections for signals that could shape global market sentiment this week.

Aerospace and defence stocks are among the biggest drags on the FTSE 100, falling 1.2%, with Rolls-Royce and Relx each down more than 1.6%. Industrial metal miners are also under pressure, down 2.1% to a near four-month low as copper prices fall to seven-week lows, with Anglo American and Antofagasta losing 2.8% and 2% respectively.

Precious metal miners are down nearly 2.7% to a three-month low, tracking a 1% decline in gold prices. By 1043 GMT, the FTSE 100 stands at 10,705.31 points, while the FTSE 250 is off 0.3%.

Company updates shape sector performance

Drax Group is leading the FTSE 250 with a 9% jump after the power generator says it has partnered with Brookfield Asset Management and Radiant to develop a data centre.

Elsewhere, Coca-Cola Europacific Partners is down 2.4% after the bottler flags cost pressures. Primark owner Associated British Foods is the worst performer on the FTSE 100, slipping 3% after forecasting lower annual profit.

Insurer Hiscox is bucking the broader market decline, gaining 3% after reporting a 9.5% rise in insurance premiums in the first nine months of 2026.

In our earlier article on shifting expectations for a Bank of England rate hike, we noted that persistent inflation and firmer UK data pushed many economists to pencil in a 25-basis-point increase, taking Bank Rate to 4.0% in November. The piece also highlighted that energy-related price risks and policymakers’ guidance were keeping markets focused on whether tighter policy could extend beyond the next meeting.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.