FTSE 100 hits two-week low as energy stocks slide

By Reuters News

Sept 29 (Reuters) - London's FTSE 100 slipped to a two-week low on Tuesday, dragged down by heavyweight energy stocks as oil prices retreated, while British American Tobacco fell after issuing downbeat guidance.

The blue-chip FTSE 100 index .FTSE fell 0.5% to 10,636.71 points, its lowest since September 15, while the midcap FTSE 250 .FTMC climbed 0.2%.

  • Oil declined as investor focus remained on supply from the Middle East despite lingering concerns about disruption brought about by the US-Israeli war on Iran O/R

  • Energy sector .FTNMX601010 dropped 1.9%, with oil majors BP BP.L and Shell SHEL.L declining 2.3% and 1.7%, respectively

  • British American Tobacco BATS.L slipped 1.9% after warning its annual growth is likely to come in at the lower end of its forecast range

  • Consumer staples stocks also fell, with Unilever ULVR.L and Tesco TSCO.L slipping 1.2% and 1.7%, respectively

  • Household goods & home construction sector .FTNMX402020 declined 1.3% after surging 10% in the prior session

  • Vesuvius VSVS.L surged 24.7%, topping the FTSE 250 after Austria-based RHI Magnesita N.V RHIM.VI proposed to buy the metal flow engineering firm in a cash-and-stock bid

  • Pharma giant AstraZeneca AZN.L eased 0.5%, after hitting a two-month high earlier in the session, after it said it would invest $2 billion in Summit Therapeutics SMMT.O

  • On the data front, Bank of England data showed unsecured lending to British households grew at its fastest annual pace since 1993 in August, highlighting resilient consumer demand ahead of the October budget

  • British shop price inflation slowed slightly in September despite cost pressures on retailers from the Iran ‌war, according to a survey from the British Retail Consortium

  • Investors are also awaiting second-quarter GDP data due later this week for clues on the health of the UK economy

  • Separately, Prime Minister Andy Burnham pledged to revive Britain by tackling its deepest problems such as social care, housing and utilities.

($1 = 0.7562 pounds)

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