The FTSE 100 opened lower on Tuesday, slipping 74 points or 0.8% to 9,627, as weakness in the mining sector weighed heavily on the index. Declines in copper and iron ore prices pressured commodity-linked stocks, while cues from Chancellor Rachel Reeves about the Autumn Budget preview are expected later today.
Mining stocks were among the biggest drags on the benchmark index. Antofagasta slumped 3.46% to £2,650, while Rio Tinto dropped 1.49% to £5,280, and Endeavour Mining fell 2.24% to £2,972 amid falling base and precious metal prices.
The weakness followed a drop in copper and iron ore futures overnight, reflecting slowing industrial demand and a stronger dollar. Fresnillo and Anglo American also lost ground, down over 2% each.
Among the broader index, Next declined 1.96%, and Diploma slid 2.14%, while Games Workshop dropped 1.40% on profit-taking after last week’s surge.
Associated British Foods emerged as one of the session’s top performers, rising 1.49% to £2,314, after the company confirmed it is reviewing a potential separation of its Primark and Food divisions.
ABF also reported full-year profits of £1.73 billion, down 13% YoY but above market expectations of £1.68 billion. A £250 million share buyback and a total dividend of £63 were announced, although the payout was trimmed from £90 last year.
BP offered another bright spot, posting third-quarter underlying profits of $2.2 billion, slightly ahead of analyst expectations of $1.98 billion.
The oil giant also announced an additional $750 million share buyback, signaling confidence in cash flow strength.
CEO Murray Auchincloss said BP had successfully launched all six major energy projects planned for 2025, with four ahead of schedule.
Global sentiment remained mixed after another split performance in the US markets. The S&P 500 rose 0.17%, powered by the tech giants, which gained 1.18%, while the Dow Jones fell 0.5%.
Asian equities followed Wall Street’s softer cues, with Japan’s Nikkei down 1.7% and Hong Kong’s Hang Seng sliding 0.7%, as investors booked profits ahead of key US economic releases.
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Investors will be watching Chancellor Rachel Reeves' speech at Downing Street, where she will outline the government’s priorities for the upcoming Autumn Budget.
Reeves is likely to focus on reducing national debt, protecting the NHS, and addressing the cost-of-living crisis, amid reports of a £30 billion fiscal shortfall due to weak productivity forecasts.
According to analysts at Goldman Sachs, credible fiscal discipline may lower the yields of gilt by 0.2 percentage points.
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