The FTSE 100 closed lower for a third consecutive session on Wednesday, with investors remaining cautious over the Middle East conflict despite encouraging US inflation data.
London’s blue-chip index slipped 11.04 points, or 0.1%, to 10,833.15, while the FTSE 250 edged 0.1% higher to 24,814.88 and the AIM All-Share gained 0.6% to 803.93.
US inflation eased as expected, with annual CPI slowing to 3.4% in July from 3.5% in June, while core inflation fell to 2.5%. Markets subsequently increased expectations that the Federal Reserve will leave interest rates unchanged at its September meeting.
Middle East uncertainty remained a significant influence on sentiment. Brent crude rose to around $88.88 a barrel, with the Strait of Hormuz remaining closed amid continuing disagreements between Washington and Tehran.
Gold strengthened to $4,422 an ounce, helping Fresnillo and Endeavour Mining gain 2.3% and 2.5% respectively.
Among individual stocks, Balfour Beatty surged 7.1% to a record high after raising its full-year guidance following stronger-than-expected first-half trading. Ocado jumped 16% after JPMorgan reiterated its positive stance and increased its price target to 290p.
Retailers were among the session’s weakest performers. Burberry fell 4.2%, Marks & Spencer 4.0%, Tesco 2.0% and Next 1.6%, with Tesco also hit by a Shore Capital downgrade.
Investors now turn to Thursday’s UK GDP figures, alongside eurozone industrial production and US producer-price inflation data.
