(Reuters) – Britain’s benchmark index slipped on Tuesday, dragged by the communications sector, while the mood in global markets was cautious over a possible trade war between the United States and China.
The FTSE 100 was down 0.2% to 8,564.58 points by 1025 GMT, while the domestically focussed mid-cap FTSE 250 was steady at 20,695.27 points.
The communications sector was the biggest drag on the benchmark index, following a 6.4% drop in Vodafone after the mobile group reported another deterioration in Germany, its biggest market, in the third quarter.
The oil and gas sector was the top decliner among sectors, falling 1.1% after U.S. crude prices fell by nearly 2% as U.S. tariffs on China took effect. [O/R]
Diageo dropped as much as 4.7%, touching its lowest since Nov. 6, after the spirits maker withdrew its medium-term organic sales growth target as it took steps to try and mitigate the impact of U.S. tariffs on its tequila and Canadian whisky.
The beverages sector lost 0.5%.
Dunelm Group rose 2.2% after RBC upgraded the rating on the homeware retailer to “outperform” from “sector perform”.
On the macro front, the Bank of England is expected to cut interest rates by 25 basis points on Thursday. On the same day, markets will get a reading of Britain’s PMI figures for January.
In global markets, the U.S. and China set financial markets on edge with tit-for-tat tariffs that raised the spectre of a broader, damaging trade conflict.
Overnight, Trump agreed to a 30-day pause on the 25% tariffs on Mexican and Canadian imports.
(Reporting by Pranav Kashyap in Bangalore; Editing by Varun H K)
