UK shares opened slightly lower on Tuesday, hurt by a sell-off in mining stocks as prices of most metals slipped on concerns around the Middle East war, while investors maintained caution ahead of key economic data from the United States.
The FTSE 100 index edged down 0.1% by 0704 GMT, while the mid-cap index dropped 0.2%.
Industrial metal miners were down 0.8%, while precious metal miners lost 0.3% as the US dollar and Treasury yields firmed ahead of economic data and Federal Reserve Chair Jerome Powell’s speech this week.
US retail sales and industrial production data is scheduled to come later in the day, while Powell’s upcoming speech on Thursday could offer more clarity on the US central bank’s rate stance.
Shares of gambling company 888 Holdings fell 1.5% on news that British government is considering a new levy on online gambling companies of up to 1% to fund research, prevention and treatment of gambling addiction.
Bellway tumbled 3.3% after the homebuilder reported a slump in its annual profit and warned to build 31% fewer homes in 2024, as high mortgage rates took a toll on demand.
FTSE 100 starts the week higher on boost from commodity-linked stocks
The homebuilders index was down 1.6%. Meanwhile, engineering company Rolls-Royce said it would cut 2,000-2,500 roles across its global business as part of a cost-cutting drive, sending shares up 1.5%.
The broader aerospace and defense index added 0.8%.
Data showed growth in British workers’ regular pay slowed for the first time since January from a previous record high and job vacancies also dropped during the three months to the end of August.
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