The FTSE 100 index experienced a decline on Tuesday, largely due to persistent pressure from travel and leisure stocks coupled with a stronger pound. The blue-chip index dropped by 0.2% at 1100 GMT, marking the potential for a sixth consecutive session of losses. British Airways owner IAG fell 4% following Delta Air Lines’ profit forecast cut, exacerbating concerns over economic uncertainties in the U.S., while Holiday Inn owner IHG dropped by 3.3%.
The midcap FTSE 250, however, rallied by 0.4%, showing resilience after plunging to nearly a two-month low on Monday. Market sentiment remains cautious amid ongoing uncertainties concerning U.S. tariff policies and global economic growth prospects. In the UK, the homebuilders’ sector saw a 2.2% rise, driven by Persimmon’s gains of 2.1% following strong profit announcements.
Contributing to the index’s gains, major players like Shell Plc and BP benefited as oil prices recovered some ground. Rotork Plc surged by 6.7%, boosting the midcap index after announcing an acquisition deal and a share buyback plan. Meanwhile, on the consumer front, British spending appears to be slowing, as indicated by February retail sales data showing a softer year-on-year growth of 1.1% down from January’s 2.6%.
(With inputs from agencies.)
