FX.co ★ FTSE 100 Lags Europe on Tuesday

The FTSE 100 was broadly flat on Tuesday, lagging other major European indices as weakness in defensive stocks offset gains in the energy sector. Among healthcare and consumer staples, AstraZeneca fell around 1%, GSK dropped more than 1.5%, and Unilever slipped roughly 0.6%. By contrast, energy heavyweights Shell and BP gained 1.4% and 1.8%, respectively.

Sentiment in the oil market was tempered by renewed hopes of a potential agreement in the Middle East, which eased some concerns over supply disruptions and cooled the recent rally in crude prices. Pakistan indicated that the US and Iran may be nearing an arrangement aimed at de-escalating tensions and potentially facilitating the reopening of the Strait of Hormuz.

In corporate news, InterContinental Hotels Group fell more than 2% despite posting first-half profits ahead of expectations. Housebuilder Bellway also struck a cautious tone, warning of an uncertain near-term outlook even as it beat forecasts for home completions and housing revenue.

On the macroeconomic front, UK retail sales rose 1.3% year-on-year in July, while Barclays reported consumer spending growth of 2%, its fastest pace so far this year.