The FTSE 100 closed 18.31 points, or 0.2%, lower at 10,844.19 on Tuesday, as gains for oil majors were offset by weakness across insurers and caution ahead of key US inflation data.
The FTSE 250 gained 0.2% to 24,799.75, while the AIM All-Share rose 0.4% to 799.57.
Oil remained a major focus as uncertainty continued over efforts to reopen the Strait of Hormuz. Brent briefly touched $90 a barrel before trading around $88.22 later in the session. Higher crude prices lifted BP 2.2% and Shell 1.8%.
Investors are now looking towards Wednesday’s US CPI figures for clues on the Federal Reserve’s next move following last week’s unexpectedly weak jobs report.
London insurers came under pressure after UBS downgraded Legal & General and M&G to ‘sell’, sending the shares down 3.1% and 3.3% respectively. Standard Life, Prudential and Admiral also declined.
Spirax was the FTSE 100’s biggest faller, dropping 5.6%, after unchanged guidance disappointed investors.
Gold remained firm at around $4,376 an ounce, helping Endeavour Mining gain, while St James’s Place topped the FTSE 100 leaderboard.
Wednesday’s attention turns to US and German inflation figures, while UK corporate results are due from Balfour Beatty and Evoke.
