By Ankita Yadav
(Reuters) -The UK’s FTSE 100 retreated from record highs touched earlier in the session on Tuesday as rising U.S. inflation raised concerns about the impact of tariffs, while investors also focused on the Bank of England’s monetary policy path.
The blue-chip FTSE 100 dropped 0.7% to 8,938.32, having crossed the 9,000 mark for the first time earlier in the day, while the domestically oriented FTSE 250 index fell 0.2%.
Wall Street indexes came under pressure after data showed U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation.
However, British stocks have largely shrugged off concerns about chaotic U.S. trade policies, with the UK being the first country to secure a trade deal with the United States.
“The FTSE has been fired up partly by its defensive nature as more investors appear to be seeking shelter from potential volatility in the US and the unpredictability of the Trump administration,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Bank of England Governor Andrew Bailey will give his annual “Mansion House” address to London’s financial sector later on Tuesday, along with finance minister Rachel Reeves.
Concerns about the economy have prompted traders to increase their bets of rate cuts from the BoE this year, with investors looking for at least two quarter-point rate cuts this year.
Among individual stocks, GSK fell 1.5% after the U.S. Food and Drug Administration raised safety concerns that the drugmaker’s blood cancer drug Blenrep, when used in combination with other treatments, may cause eye damage in patients.
Experian rose 4.3% after the credit data firm reported 8% organic revenue growth in the first quarter and reaffirmed its annual forecasts.
Barratt Redrow slumped 8.9% after Britain’s largest homebuilder said home completions missed expectations for fiscal 2025.
(Reporting by Ankita Yadav in Bengaluru; Editing by Sahal Muhammed and Sharon Singleton)
