FTSE 100 falls for third straight session; Balfour Beatty jumps to record high

Aug 12 (Reuters) - London's FTSE 100 closed lower on Wednesday for the third straight day, as investors cautiously monitored efforts to end the war in the Middle East, while Balfour Beatty soared to a record high after raising its annual forecast.

The blue-chip FTSE 100 index closed 0.1% down at 10,833.15 points. The midcap FTSE 250 ticked up 0.1% to 24,814.88 points.

• U.S. consumer prices barely increased in July as the cost of gasoline declined for a second straight month, while underlying inflation was benign, further reducing the odds of an interest rate hike from the Federal Reserve next month.

• Oil prices fell in volatile trading, having earlier traded $1 higher, after forecasters cut projections for 2026 global oil demand, while attacks on ships in the Middle East continued as talks to end the Iran war hit an impasse. [O/R]

• Shares of precious metal miners Fresnillo and Endeavour Mining firmed, tracking higher gold prices after data showed U.S. inflation rose in line with expectations, bolstering bets that the Federal Reserve will keep rates on hold in September. [GOL/]

• Investors are also waiting for the UK's GDP data on Thursday, which is expected to show economic growth stalled on a month-over-month basis in June following a 0.1% growth in May.

• Britain's new Prime Minister Andy Burnham said in an interview with the BBC that his government will do what it can to help lower costs for business, though he acknowledged a "difficult financial outlook". Traders are currently pricing in a 46% chance of a 25-basis-point rate hike by the Bank of England in December.

• Among the midcap index, Balfour Beatty jumped 7% after the construction group raised its annual operating profit forecast, while Hill & Smith slid 4.9% after the infrastructure supplier expected underlying operating profits modestly ahead of previous guidance.

• Ocado jumped 15.6% after J.P.Morgan said it additional customer wins are achievable for the online grocery group.

(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Vijay Kishore)