FTSE 100 slips as inflation fears build on oil rise

FTSE 100 Drops on Inflation Fears Amid Surging Oil Prices and Key Policy Events

Market Overview and Key Drivers

FTSE 100 and FTSE 250 Performance

Nov 3 (Reuters) - Britain's FTSE 100 edged lower on Tuesday as a resurgence in oil prices weighed on risk sentiment, ahead of US midterm elections and this week's Bank of England policy decision. 

The blue-chip FTSE 100 index fell 0.5% to 10,705.31 points by 1043 GMT, while the midcap FTSE 250 slipped 0.3%.     

Oil Prices and Inflation Concerns

Crude Oil Price Movements

• Crude prices rose more than 1.5%, after a 7% fall on Monday, following an Iranian official statement that a deal to end the war remained far off  [O/R]

Central Bank Responses

• Elevated oil prices have fanned inflationary fears, and many central banks have raised interest rates, with the BoE largely expected to deliver a 25-basis-point hike on Thursday

Sector Performance Highlights

Aerospace and Defence

• Aerospace and defence stocks were among the biggest drags on the index on Tuesday, down 1.2%, with Rolls-Royce and Relx down over 1.6% each

Industrial Metal Miners

• Industrial metal miners dropped 2.1% to a near four-month low, as copper prices fell to seven-week lows. Anglo American and Antofagasta lost 2.8% and 2% respectively [MET/L]

Precious Metal Miners

• Precious metal miners fell nearly 2.7% to a three-month low tracking a 1% drop in gold prices [GOL/]

Upcoming Events and Market Reactions

US Midterm Elections

• On Tuesday, markets will watch the US midterm elections, where a strong showing for the Democrats is priced in, which could set the tone for global markets this week

Bank of England Policy Decision

• Elevated oil prices have fanned inflationary fears, and many central banks have raised interest rates, with the BoE largely expected to deliver a 25-basis-point hike on Thursday

Company-Specific Movers

Top Gainers

Drax Group

• Drax Group topped the FTSE midcap index with a 9% jump, after the power generator said it has partnered with Brookfield Asset Management and Radiant to develop a data centre

Hiscox

• Insurer Hiscox gained 3% after reporting a 9.5% rise in insurance premiums in the first nine months of 2026

Top Losers

Coca-Cola Europacific Partners

• Coca-Cola Europacific Partners fell 2.4% after the bottler flagged cost pressures

Associated British Foods

• Primark owner Associated British Foods bottomed the FTSE 100 with a 3% slip after forecasting lower annual profit

(Reporting by Darshan Kumar in Bengaluru; Editing by Harikrishnan Nair)