FTSE 100 Steady Amid BP Decline and Investor Caution Ahead of Fed Testimony

London's FTSE 100 remained steady as a decline in BP shares was offset by broader market gains. Investors are eagerly awaiting Federal Reserve Chair Jerome Powell's testimony before the U.S. Congress. Mid-cap FTSE 250 experienced a slight decline, influenced by Labour Party's election win and notable corporate developments, including Indivior Plc job cuts.

The FTSE 100 in London displayed muted activity on Tuesday, with offsetting dynamics between declining BP shares and broader market gains. Investors are keenly anticipating Federal Reserve Chair Jerome Powell's testimony before the U.S. Congress.

While the blue-chip FTSE 100 saw a modest increase of 0.1%, the mid-cap FTSE 250, highlighted by the Labour Party's election victory, experienced a 0.1% decrease as of 0725 GMT. The energy sector dragged down by a 2.4% slump in BP shares, particularly affected by the oil giant's warning of a possible hit to its second-quarter earnings due to lower refining margins and weak oil trading.

Meanwhile, precious and industrial metal miners saw rises of 0.7% and 0.8% respectively, in line with gold and copper prices. Investor sentiment remained cautious ahead of Powell's upcoming two-day testimony, with soft U.S. labor market data further fuelling speculation about a possible September rate cut.

In other corporate news, Indivior Plc's shares plummeted 36.7% following the announcement of 130 job cuts and a lowered profit forecast for the year. Recruiter PageGroup also faced a significant drop of 11.2% after citing weaker hiring trends in June and a cautious outlook for the second half of the year.

(With inputs from agencies.)