FTSE 100 slips as inflation fears build on oil rise
Nov 3 (Reuters) - Britain's FTSE 100 edged lower on Tuesday as a resurgence in oil prices weighed on risk sentiment, ahead of US midterm elections and this week's Bank of England policy decision.
The blue-chip FTSE 100 index .FTSE fell 0.5% to 10,705.31 points by 1043 GMT, while the midcap FTSE 250 .FTMC slipped 0.3%.
Crude prices rose more than 1.5%, after a 7% fall on Monday, following an Iranian official statement that a deal to end the war remained far off O/R
Elevated oil prices have fanned inflationary fears, and many central banks have raised interest rates, with the BoE largely expected to deliver a 25-basis-point hike on Thursday
Aerospace and defence stocks .FTNMX502010 were among the biggest drags on the index on Tuesday, down 1.2%, with Rolls-Royce RR.L and Relx REL.L down over 1.6% each
Industrial metal miners .FTNMX551020 dropped 2.1% to a near four-month low, as copper prices fell to seven-week lows. Anglo American AAL.L and Antofagasta ANTO.L lost 2.8% and 2% respectively MET/L
Precious metal miners .FTNMX551030 fell nearly 2.7% to a three-month low tracking a 1% drop in gold prices GOL/
On Tuesday, markets will watch the US midterm elections, where a strong showing for the Democrats is priced in, which could set the tone for global markets this week
Drax Group DRX.L topped the FTSE midcap index with a 9% jump, after the power generator said it has partnered with Brookfield Asset Management BAM.N and Radiant to develop a data centre
Coca-Cola Europacific Partners CCEPC.L fell 2.4% after the bottler flagged cost pressures
Primark owner Associated British Foods ABF.L bottomed the FTSE 100 with a 3% slip after forecasting lower annual profit
Insurer Hiscox HSX.L gained 3% after reporting a 9.5% rise in insurance premiums in the first nine months of 2026