12.08.202615:28:40UTC+00FTSE 100 Extends Losses for 3rd Session

The FTSE 100 extended its modest decline for a third consecutive session on Wednesday, as investors monitored developments in the Middle East and digested the latest US inflation figures. The index was pressured by weakness in heavyweight oil and pharmaceutical stocks: Shell and BP each fell more than 1%, AstraZeneca lost 1.5%, and GSK slipped 2.1%. Unilever also declined by more than 1%. Tesco was among the sharpest fallers, dropping more than 2% after Shore Capital cut its rating on the supermarket group to “hold.”

US inflation data broadly matched expectations, tempering fears of an imminent Federal Reserve rate hike and offering some support to sentiment amid ongoing geopolitical tensions. Brent crude was volatile on Wednesday but remained at elevated levels following recent gains, with prices underpinned by uncertainty over the prospects for an agreement to reopen the Strait of Hormuz.