Market Overview
British equities edged lower on Tuesday, with the FTSE 100 slipping 0.1% to close marginally down. By contrast, Germany's DAX reversed into positive territory, rising 0.1%, and France's CAC 40 gained 0.1%. The pound weakened 0.1% against the U.S. dollar, trading at $1.3534.
Commodity Prices and Miner Performance
Copper surged to a fresh London Metal Exchange record, trading above $14,600 per tonne after Chile announced another cut to its output forecast, tightening global supply. The rally in copper lifted mining stocks on the FTSE, with Antofagasta plc posting the biggest gain at +6%, while Anglo American plc, Weir Group plc and Glencore plc also posted notable advances.
Energy and Geopolitical Developments
Brent crude rose 0.55% to $97.53 a barrel and U.S. WTI crude gained 1.10% to $92.48, reflecting heightened Middle‑East tensions. Iran’s President Masoud Pezeshkian adopted a harder tone, stating Tehran would continue resistance until aggressors become regretful. Earlier, Iran’s acting defence minister warned of possible strikes on U.S. warships enforcing a naval blockade, prompting Washington to pledge “decisive measures.” Qatar announced efforts, alongside China and other partners, to revive U.S.–Iran talks; Qatari Prime Minister Sheikh Mohammed met Chinese Foreign Minister Wang Yi in Beijing, where Wang emphasized that “pressure through guns and cannons is not the way out.” Qatar also highlighted reopening the Strait of Hormuz as a paramount priority. Houthi forces struck multiple Saudi energy facilities, raising the reported injured count to roughly 74, and the GCC and Kuwait condemned the attacks as a dangerous escalation. Shipping traffic through the Strait remained thin, with Kpler’s 10‑day average of 10 vessels—the lowest level since May.
UK Policy and Economic Data
The United Kingdom confirmed a trade ban on goods originating from Israeli settlements in the occupied West Bank, with Foreign Secretary David Miliband describing it as “the beginning of a new approach.” The ban was accompanied by new sanctions targeting Hezbollah‑linked lender Al‑Qard Al‑Hassan. Retail sales data from the British Retail Consortium showed year‑on‑year growth slowing to 0.7% in August, down from 3.1% a year earlier, underscoring a deceleration in consumer spending.
Macro Context and Market Sentiment
The week’s data calendar also featured the European Central Bank’s policy meeting on Thursday and the U.S. Consumer Price Index release on Friday. Jefferies analyst Mohit Kumar warned that the U.S. CPI could trigger a rates rally, given stretched Treasury and Bund positioning.
Corporate Updates
In the UK round‑up, Computacenter plc projected 2026 profit to exceed forecasts, citing strong demand for artificial‑intelligence services in North America. Dunelm Group plc announced a three‑year growth plan that includes £100 million of cost reductions.
Summary of Key Figures
- FTSE 100: –0.1%
- Copper LME record: > $14,600 / tonne
- Antofagasta gain: +6%
- Brent crude: $97.53 / bbl (+0.55%)
- WTI crude: $92.48 / bbl (+1.10%)
- Gold Dec futures: $4,450.45 / oz (‑0.60%)
- Spot gold: $4,405.28 / oz (little changed)
- UK retail sales YoY growth Aug: 0.7% (down from 3.1% YoY a year earlier)
- Shipping through Hormuz 10‑day average: 10 vessels (lowest since May)
- Injured in Saudi energy attacks: ~74