Market Analysis

On Tuesday, the UK's FTSE 100 benchmark stock index dipped slightly, driven lower by declines in energy and copper mining shares. Despite this, optimism surrounding a potential September interest rate cut by the U.S. Federal Reserve helped to temper the losses.

The FTSE 100 index fell by 0.2% to 0708 GMT, following its highest close since early August on Monday. Conversely, the mid-cap FTSE 250 edged up by 0.1% by 0708 GMT.

Energy stocks were the main decliners, dropping 1% as oil prices fell. Major players in the sector, Shell (LON) and BP (NYSE), each saw a decline of about 1%.

The reduction in oil prices was partly due to Israel's acceptance of a proposal aimed at resolving disagreements over a ceasefire deal in Gaza, which alleviated concerns about supply disruptions in the Middle East.

Real estate and real estate investment trusts also saw losses, with each sector dropping 0.2% after gains on Monday.

Industrial metal miners decreased by 0.3% as copper prices fell following a rally in the previous session.  Chilean miner Antofagasta (LON) saw a slight increase after reporting a 5% rise in its half-year profit.

In contrast, precious metal miners rose by 0.5% as gold prices held steady near record highs. 

Market attention is now turning to Fed Chair Jerome Powell's upcoming speech at the Jackson Hole economic symposium in Wyoming. Powell is widely anticipated to highlight the case for a September interest rate cut, following recent comments from Fed officials and economic data that have bolstered expectations for a rate reduction.

Investors are also keeping an eye on the UK's and U.S.'s purchasing managers index (PMI) numbers and the minutes from the Fed's last meeting, as the week is relatively light on data.

Wood Group fell 1%, despite the oilfield services and engineering firm reporting an 8.5% increase in its first-half adjusted core earnings.

Paraphrasing text from "Reuters" all rights reserved by the original author.