The FTSE 100 slipped 0.4% on Tuesday but still outperformed the Euro Stoxx 50. Mining stocks were among the sharpest fallers, with Endeavour and Fresnillo each losing more than 5% as gold and silver prices pulled back. Rising expectations for higher-for-longer interest rates pressured non-yielding precious metals, while Antofagasta and Anglo American also declined 5.4% and 3.8%, respectively. Rolls-Royce dropped more than 4%.
By contrast, energy stocks rose strongly as oil prices moved higher, with Shell up 2.6% and BP advancing 5.7%. Brent crude climbed above $92 a barrel, stoking fears that persistently high energy costs could extend inflationary pressures.
Domestic data added to these concerns. Figures from the British Retail Consortium showed UK shop price inflation accelerating to a two-year high of 1.5% in August, while food inflation rose to 2.8%. Meanwhile, Nationwide reported that UK house prices increased by 0.2% in August, a slightly faster pace than in July and ahead of market expectations.