FTSE dips as oil majors suffer from falling Brent crude prices

On Tuesday, the FTSE 100 index experienced a decline, closing 64.86 points lower at 8,205.98. This drop was primarily influenced by a significant decrease in Brent crude oil prices, which fell to their lowest level since 2021, impacting major oil companies like Shell and BP. Brent crude was down 3.9%, trading at 68.58 US dollars per barrel as markets closed in London. Additionally, AstraZeneca's shares fell by 2.4% to 12,406p after the company reported disappointing results from trials of its lung cancer treatment, datopotamab deruxtecan. The trials did not achieve statistical significance for overall patient survival, further contributing to the negative sentiment surrounding the index. Investor caution was also evident across European markets, with the Cac 40 and Dax indices closing lower ahead of the European Central Bank's interest rate decision later in the week. Analysts expect a potential cut in the main refinancing rate, which added to the cautious market atmosphere. In the US, tech stocks showed resilience, with the Nasdaq rising despite a dip in Apple's shares following the launch of a competing phone by Huawei. Meanwhile, the British pound fell to a three-week low, reflecting concerns over slowing wage growth in the UK, which was reported at 5.1% year-on-year for the three months ending in July.