The FTSE 100 moved 0.16%, or 11.79 factors, decrease to complete at 7,426.14.
Chris Beauchamp, chief market analyst at IG, mentioned: “It seemed that the FTSE 100 was fated to suffer a sharp down day, but as the session wore on buyers came in to defend the 7400 level.
“But with little in the way of heavyweight news, and despite gains for the oil giants BP and Shell, the mood in London remains cautious.
“UK inflation remains an untamed beast, and oil’s rise threatens to upend the Bank of England’s plans for the year.”
Across the Channel, issues over the German economic system have been crystallised by terrible German manufacturing unit orders quantity for July noticed output plunge by 11.7% for the month, including strain to equities.
Germany’s Dax index was 0.19% decrease for the day and the Cac 40 closed down 0.84%.
In the US, opened decrease on the again of worries over sticky inflation as merchants took their cues from weak spot in Europe.
Meanwhile, in foreign money, sterling dropped after Bank of England governor Andrew Bailey mentioned he believes that present rates of interest are “nearer to the top” of the potential fee cycle within the UK.
The pound was down 0.54% to 1.249 US {dollars} and was 0.47% decrease at 1.165 euros at market shut in London.
In firm news, historic retailer WH Smith noticed its shares fall regardless of a seemingly optimistic buying and selling replace as traders have been left unimpressed by the shortage of improved steerage from the agency.
It got here because the London-listed agency noticed a 28% rise in whole group revenues over the complete 12 months to August, because the recovering journey market boosted gross sales.
WH Smith nonetheless noticed shares drop by 94p to 1,390p.
Cyber safety agency Darktrace additionally closed decrease after it downgraded its outlook for the 12 months and advised shareholders that the second half of the 2024 monetary 12 months could be the extra productive.
The firm’s outcomes subsequently disenchanted many analysts, sending its shares down 9.2p to 360p.
Halfords shares have been pushed larger by improved gross sales on the again of sturdy demand for motoring upkeep and servicing.
The retail group advised shareholders that “needs-based” services have been the principle driver behind a 14.1% rise in whole revenues over the 5 months to August 18, however mentioned different retail commerce was impacted by weak summer season climate and waning shopper confidence.
Shares have been up 5.5p to 192.3p on the finish of the session.
The worth of oil recorded a softer improve after its latest surge in worth however nonetheless completed larger.
A barrel of Brent crude rose by 0.28% to 90.29 US {dollars} as markets have been closing in London.
The greatest risers on the FTSE 100 have been Johnson Matthey, up 63.5p to 1,782p, Sage Group, up 17.4p to 990.4p, Land Securities Group, up 10.2p to 585.2p, Bunzl, up 47p to 2,813p, and B&M European Value Retail, up 9.2p to 557p.
The greatest fallers on the FTSE 100 have been Burberry Group, down 103p to 2,085p, IAG Group, down 5.9p to 153.75p, St James’s Place, down 19.8p to 854.2p, Prudential, down 21.6p to 933.2p, and Abrdn, down 3.35p to 157.7p.
