FTSE 100 slips as oil jumps before BoE call

The FTSE 100 closed 0.7% lower on Tuesday, with energy and defence shares dragging the index, while oil prices jumped early on Wednesday after the US ordered a blockade of sanctioned Venezuelan oil tankers. In London trading, BAE Systems fell 1.9%, Babcock dropped 4.1% and EasyJet rose 3.4% by the close, while IG Group jumped 8.1% after saying it expects 2026 revenue growth to land around the middle of its guided range and Serica Energy rose 5.3% on an agreed North Sea asset purchase. In the US, the S&P 500 closed 0.24% lower on Tuesday as Pfizer fell 3.4% after forecasting a tough 2026, Humana dropped 6% following leadership changes, Comcast rose 5.4% on activist investor speculation and B. Riley Financial surged 53.8% after reporting a quarterly profit.

Equities

The FTSE 100 fell 0.7% on Tuesday, closing lower as declines in energy and defence shares outweighed gains elsewhere in the market. The FTSE 250 finished broadly flat by the close in London, reflecting a mixed picture across domestically focused stocks. Falling oil prices and fresh UK labour market data shaped trading through the afternoon, while sterling strengthened against the dollar ahead of the Bank of England’s interest rate decision later this week.

Energy stocks closed around 3% lower on Tuesday, tracking a sharp drop in crude prices as prospects of progress in Russia–Ukraine peace talks lifted expectations of looser sanctions. BP shares closed lower on the day, reflecting pressure across the sector, although the company itself made no fresh business statements. In defence, BAE Systems ended Tuesday down 1.9%, while Babcock closed 4.1% lower, as investors reassessed the outlook for military spending following comments from US officials about potential security guarantees for Ukraine.

Airline shares moved in the opposite direction, helped by cheaper fuel. EasyJet closed 3.4% higher on Tuesday, benefiting directly from the fall in oil prices. In financial services, IG Group shares jumped 8.1% by the close after the company said it expects revenue growth in 2026 to land around the middle of its guided range, a statement that reassured investors about trading momentum. Serica Energy rose 5.3% late on Tuesday after announcing an agreement to buy a portfolio of Southern North Sea assets from Spirit Energy, pointing to an expansion of its UK-focused operations.

In the United States, trading ended mixed. The S&P 500 closed 0.24% lower on Tuesday, while the Dow Jones Industrial Average fell 0.62%. The Nasdaq Composite finished the session 0.23% higher, recovering earlier losses. Healthcare and energy stocks weighed most heavily on the broader market.

Pfizer shares closed 3.4% lower on Tuesday after the drugmaker forecast a difficult 2026, citing weaker sales of COVID-19 products and pressure on margins. Humana fell 6% by the close after the health insurer announced leadership changes, without providing further detail. Energy shares slid sharply as crude prices touched their lowest levels since 2021.

Away from those sectors, B. Riley Financial surged 53.8% on Tuesday after reporting a second-quarter profit in a long-delayed filing, compared with a loss a year earlier. Comcast shares closed 5.4% higher following speculation during the session about potential interest from an activist investor. Nasdaq Inc ended the day modestly higher after Reuters reported the exchange operator had submitted paperwork to regulators to allow round-the-clock stock trading in the future.

Forex & Commodities

The US dollar traded just off two-and-a-half-month lows after the latest labour market figures left uncertainty around the Federal Reserve’s rate path for next year. The dollar index was higher on the morning at 98.39, but remained close to levels last seen in early October after falling sharply in the previous session. Late on Tuesday, the greenback weakened following data showing the US unemployment rate rose to 4.6% in November, despite payroll growth of 64,000 jobs.

Sterling moved lower easing to $1.339 after touching a two-month high late on Tuesday. The euro slipped slightly in Asian trading to $1.173, but stayed close to a 12-week high reached in the previous session. Attention is firmly on Thursday’s European Central Bank decision, where rates are expected to be held steady. In Japan, the yen weakened ahead of the Bank of Japan’s meeting later this week, trading at 155.1 per dollar as investors looked ahead to a widely anticipated rate rise.

Gold prices edged higher late on Tuesday as the softer US labour data weighed on the dollar. Spot gold was quoted at $4,310 per ounce by the London close, supported by falling Treasury yields and expectations that US borrowing costs could fall further next year. Platinum stood out among precious metals, jumping to $1,855, its highest level since 2011, while palladium rose to $1,606.

Oil prices rebounded early on Wednesday after sharp losses in the previous session. Brent crude was trading at $59.79 a barrel and US crude at $56.12 after President Donald Trump ordered a blockade of sanctioned oil tankers linked to Venezuela. The move followed oil settling near five-year lows on Tuesday amid progress in Russia–Ukraine peace talks. Traders noted that Venezuelan supply represents a small share of global output, but any prolonged disruption could lift prices for heavier crude grades.