FTSE 100 slips as inflation fears build on oil rise

Nov 3 (Reuters) - Britain's FTSE 100 edged lower on Tuesday as a resurgence in oil prices weighed on risk sentiment, ahead of US midterm elections and this week's Bank of England policy decision. 

The blue-chip FTSE 100 index fell 0.5% to 10,705.31 points by 1043 GMT, while the midcap FTSE 250 slipped 0.3%.     

• Crude prices rose more than 1.5%, after a 7% fall on Monday, following an Iranian official statement that a deal to end the war remained far off  [O/R]

• Elevated oil prices have fanned inflationary fears, and many central banks have raised interest rates, with the BoE largely expected to deliver a 25-basis-point hike on Thursday

• Aerospace and defence stocks were among the biggest drags on the index on Tuesday, down 1.2%, with Rolls-Royce and Relx down over 1.6% each

• Industrial metal miners dropped 2.1% to a near four-month low, as copper prices fell to seven-week lows. Anglo American and Antofagasta lost 2.8% and 2% respectively [MET/L]

• Precious metal miners fell nearly 2.7% to a three-month low tracking a 1% drop in gold prices [GOL/]

• On Tuesday, markets will watch the US midterm elections, where a strong showing for the Democrats is priced in, which could set the tone for global markets this week

• Drax Group topped the FTSE midcap index with a 9% jump, after the power generator said it has partnered with Brookfield Asset Management and Radiant to develop a data centre

• Coca-Cola Europacific Partners fell 2.4% after the bottler flagged cost pressures

• Primark owner Associated British Foods bottomed the FTSE 100 with a 3% slip after forecasting lower annual profit

• Insurer Hiscox gained 3% after reporting a 9.5% rise in insurance premiums in the first nine months of 2026

(Reporting by Darshan Kumar in Bengaluru; Editing by Harikrishnan Nair)