FTSE 100 slips in catch-up trade, BP shines after earnings

After a bank holiday on Monday, the blue-chip index fell 0.7%, catching up with losses in continental Europe, while the domestically focussed mid-cap index declined 0.4%. Defensive consumer staples stocks like spirits maker Diageo and Dove soap maker Unilever fell more than 1% each, ahead of the Bank of England meeting this week where it is expected to raise rates for the fourth meeting in a row.

UK's FTSE 100 started the holiday-shortened week lower on Tuesday, as weakness in mining and consumer staples stocks outweighed strong results from oil major BP. After a bank holiday on Monday, the blue-chip index fell 0.7%, catching up with losses in continental Europe, while the domestically focussed mid-cap index declined 0.4%.

Defensive consumer staples stocks like spirits maker Diageo and Dove soap maker Unilever fell more than 1% each, ahead of the Bank of England meeting this week where it is expected to raise rates for the fourth meeting in a row. BP Plc gained 1.2% after quarterly net profit rose to $6.25 billion, the highest in more than a decade on strong oil and gas trading results, even as it took a $24 billion charge after exiting Russia in February.

Miners fell 1.5%, tracking a drop in copper and aluminum prices, as COVID-19 restrictions in top consumer China and the prospect of aggressive U.S. rate hikes fuelled worries about weaker global growth. HSBC Holdings gained 1.2% after its largest shareholder, Chinese insurance giant Ping An, urged a break-up of the bank in a bid to improve returns.

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