FTSE 100 slips ahead of U.S. inflation data; Balfour Beatty hits record

The FTSE 100 edged lower on Tuesday as investors paused ahead of key U.S. inflation data, while shares in Balfour Beatty surged to a record high following a robust order intake report.

The blue-chip index fell 0.2% by mid-morning, reflecting cautious sentiment as market participants awaited the release of the U.S. Consumer Price Index (CPI) for May. Economists expect the data, due later in the session, to provide further insight into the Federal Reserve’s monetary policy trajectory.

Balfour Beatty led gains on the FTSE 100, climbing 5.1% to reach a new all-time high of 450p. The construction and infrastructure group reported a 12% rise in orders for the first quarter, driven by strong demand in the U.K. and international markets. The company also upgraded its full-year outlook, citing resilient project pipelines and improving margins.

Analysts at Jefferies maintained a buy rating on Balfour Beatty, citing the firm’s operational momentum and exposure to high-growth sectors such as rail and highways. The stock’s performance contrasted with broader market caution, as traders balanced expectations for the U.S. CPI against domestic economic signals.

The pound held steady at $1.2750, little changed from Monday’s close, as investors weighed the potential impact of U.S. inflation data on global risk appetite. Sterling’s movement remained subdued amid thin trading volumes ahead of the CPI release.

The FTSE 100’s subdued performance mirrored trends in European equities, where the Stoxx 600 was flat in early trade. Focus remained squarely on the U.S. CPI, with traders pricing in a 60% probability of a Federal Reserve rate cut by September, according to CME Group’s FedWatch tool.