FTSE 100 Dips Amid Energy and Copper Shares Decline

The UK's FTSE 100 benchmark stock index dropped 0.2% on Tuesday, influenced by declines in energy and copper mining shares. Optimism about a potential interest rate cut by the U.S. Federal Reserve tempered losses. Notably, Shell and BP fell around 1% each while precious metal miners saw slight gains.

UK's FTSE 100 benchmark stock index edged lower on Tuesday, pulled down by energy and copper miners' shares. However, optimism around a potential September interest rate cut by the U.S. Federal Reserve limited losses.

The blue-chip FTSE 100 index fell 0.2% by 0708 GMT, retreating from its highest level since early August. Meanwhile, the mid-cap FTSE 250 saw a modest increase, rising 0.1%. Energy shares were the biggest losers on the benchmark, declining 1% due to a drop in oil prices. Major players Shell and BP each saw their shares fall by about 1%.

On the downside, real estate stocks and real estate investment trusts declined 0.2% each, reversing gains from Monday. Industrial metal miners experienced a slight dip of 0.3% as copper prices fell on short-covering following a rally in the previous session. Notably, Antofagasta recorded marginal gains after the Chilean miner reported a 5% increase in half-year profit.

Conversely, precious metal miners gained 0.5% as gold prices hovered near record highs. Investors are now focusing on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole economic symposium in Wyoming, with expectations leaning towards a September interest rate cut.

(With inputs from agencies.)