Dragged down by the decline in energy stocks, the FTSE 100 fell to a two-week low.

Closing Market Update

Reuters, September 29 - On Tuesday, weighed down by retreating oil prices, energy heavyweights declined, sending London’s FTSE 100 Index to a two-week low; meanwhile, shares of British American Tobacco dropped after issuing a pessimistic earnings outlook.

The blue-chip FTSE 100 Index .FTSE fell 0.5% to close at 10,636.71 points, the lowest since September 15; meanwhile, the mid-cap FTSE 250 Index .FTMC rose 0.2%.

• Although concerns remain in the market about potential supply disruptions from the US and Israel’s actions toward Iran O/R, investors’ attention stayed on Middle Eastern supply, causing oil prices to drop

• The energy sector .FTNMX601010 declined 1.9%, with oil giants BP BP.L and Shell SHEL.L falling 2.3% and 1.7% respectively

• British American Tobacco BATS.L fell 1.9% after the company warned that its annual growth (link) could be at the lower end of its forecast range

• The consumer staples sector also declined, with Unilever ULVR.L and Tesco TSCO.L losing 1.2% and 1.7% respectively

• The household goods and home construction sector .FTNMX402020 dropped 1.3%, after the sector had surged (link) 10% in the previous session

• Vesuvius VSVS.L surged 24.7%, leading the FTSE 250 Index, after Austria-based RHI Magnesita N.V. (RHIM.VI) proposed (link) to acquire the metal flow engineering company in a cash and stock deal

• Pharma giant AstraZeneca (AZN.L) hit a two-month high early in the session before slipping 0.5%, after announcing (link) a $2 billion investment in Summit Therapeutics SMMT.O

• On the data front, Bank of England data (link) showed that year-on-year growth of unsecured lending to UK households in August reached the fastest pace since 1993, highlighting robust consumer demand ahead of the October budget announcement

• According to a survey by the British Retail Consortium, despite cost pressures on retailers due to the Iran conflict, UK shop price inflation (link) eased slightly in September

• Investors are also awaiting second-quarter gross domestic product (GDP) data due later this week for further clues about the UK’s economic conditions

• In addition, Prime Minister Andy Burnham pledged to revive the UK (link) by addressing deep-rooted problems such as social care, housing, and utilities.

(1 US dollar = 0.7562 British pounds)

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