The FTSE 100 edged up 0.05% by midday in London on Tuesday, recovering from earlier losses as shares in precious-metals miners advanced despite a jump in UK inflation.
Fresnillo led the gains, rising 3.1%, followed by Endeavour Mining and Antofagasta, each up 3%, and Anglo American, which added 2.4%. The sector’s rebound offset broader caution as consumer price inflation in the UK accelerated to 2.9% in the 12 months through July, up from 2.6% in June.
Sterling strengthened to $1.3600 against the dollar, while European peers diverged: Germany’s DAX trimmed its earlier decline to trade down 0.15%, and France’s CAC 40 extended gains to 0.31%.
Brent crude futures fell 0.05% to $90.97 a barrel, while West Texas Intermediate slipped 0.14% to $83.92. Spot gold extended its advance, climbing 2.48% to $4,436.38, while gold futures turned positive with a 1.6% gain.
UK inflation data showed a 14.7% surge in gas prices, the steepest monthly rise since October 2022, and the energy price cap was raised by £221 to an annual equivalent of £1,862. Food and drink inflation eased for a fourth straight month to 1.3%, its lowest since August 2024. Core inflation held steady at 2.6%, while services inflation dipped to 3.4%.
Capital Economics maintained its forecast that the Bank of England would hold its benchmark rate at 3.75% this year before cutting to 3.00% in 2025, though it warned that CPI could approach 3.5% later in the year as core goods inflation rises toward 3%.
In corporate news, Pinewood Technologies agreed to a £545 million takeover by U.S. private equity firm Ridgeview at £4.48 per share, a 43% premium. Smith & Nephew’s CFO John Rogers will depart on September 30, while Ithaca Energy raised its 2026 dividend guidance to $500 million–$530 million following record second-quarter production.
Oxford Nanopore reported a narrower first-half loss as gross margins improved and adjusted EBITDA losses more than halved due to tighter cost control. Trainline faces a formal investigation by the UK’s Competition and Markets Authority over whether mandatory fees were included in displayed upfront prices.
The U.S. Treasury said it would at least double the size of its buyback operations for longer-dated nominal coupon securities to a minimum of $4 billion per operation starting September 9.
Geopolitical tensions in the Middle East added a risk premium to oil and gold, with Iran’s Parliament Speaker Mohammad Bagher Ghalibaf stating that U.S. forces were seeking a “dignified exit” from the region. U.S. President Donald Trump said on Truth Social that “there are no talks or conversations going on, or scheduled” with Iran and that the Strait of Hormuz remains “open and operating.”
