UK's FTSE 100 Dips Amid Energy Stock Slump, Telecom Tumbles

The UK's FTSE 100 fell by 1% on Tuesday, impacted by declining crude prices and a significant drop in BT shares following a deal between CityFibre and Sky. Energy stocks led the decline, while precious metal miners saw gains driven by gold prices. Investors are eyeing key economic data and Fed Chair Powell's speech.

The UK's FTSE 100 closed 1% lower on Tuesday, dragged down by a third straight day of falling crude prices and a significant drop in BT shares after CityFibre struck a deal with Sky.

The blue-chip index experienced its largest one-day decline since August 5, with the mid-cap FTSE 250 also down by 0.8%. Energy shares fell by 2.8%, as oil prices reacted to weak Chinese demand expectations and possible ceasefire agreements in Gaza, potentially easing supply concerns.

Major energy companies Shell and BP saw nearly 3% drops in share prices. Telecom giant BT Group's shares plummeted 6.4% after rival CityFibre signed a deal with BT's partner Sky. Precious metal miners, however, saw gains of 0.8% backed by rising gold prices. i3 Energy's shares surged 28% following a buyout offer from Gran Tierra Energy.

Chilean miner Antofagasta posted a 5% rise in half-year profits, contributing to marginal gains. Investors are now focusing on Fed Chair Jerome Powell's upcoming speech at the Jackson Hole symposium and key economic data expected this week.

(With inputs from agencies.)