Insurers, Spirax drag down UK's FTSE 100 index

London’s FTSE 100 fell for a second session on Tuesday, as shares in Spirax tumbled onthe valve maker’s disappointing outlook, while Legal & General led a selloff in insurers following multiple brokerage downgrades.

The blue-chip FTSE 100 index fell 0.1% to 10,851.58 points by 1016 GMT. The midcap FTSE 250 fell 0.3% to 24,678.20 points.

Spirax shares fell 6%, becoming the biggest decliner in the FTSE 100, after the company maintained its annual forecast despite a rise in first-half results.

Shares of Legal & General dropped 4.4% after UBS and Goldman Sachs downgraded the stock to “sell” from “neutral.” UBS pointed to peak valuations, lower margins from its pension risk transfer business and a falling solvency ratio among the reasons for the downgrade. Goldman warned the company’s new gilt-heavy business strategy offered optionality at the expense of margins and earnings visibility.

An index of FTSE 350 insurers dropped 2.6%, with shares of Standard Life and Prudential also coming under pressure.

Global stocks too fell as oil prices rose after negotiations between the United States and Iran over a peace deal and the reopening of the Strait of Hormuz hit an impasse.

Investors are awaiting U.S. inflation data on Wednesday as well as second-quarter UK GDP data on Thursday to gauge the monetary policy outlook on both sides of the Atlantic.

British consumers spent more on food and in pubs last month on the back of England’s run to the World Cup semi-finals and hot weather boosted clothing sales, but they remained wary of big outlays, according to surveys published on Tuesday.

The British Retail Consortium’s total retail sales measure rose by a below-average 1.3% from July 2025, slowing from 1.9% in June.

Among other movers, IWG dropped 1.9% after Jefferies warned of cash flow headwinds even as the office space provider maintained its annual and medium-term targets.

InterContinental Hotels Group slipped 1.3% as room revenue growth slowed in the second quarter as a sharp decline in the Middle East offset continued gains in the United States and China.