FTSE 100 Stalls as Energy Stocks Rise Amid Retailer Slumps

London's FTSE 100 ended Tuesday almost flat, as gains in energy stocks balanced retailer losses. Shell and Imperial Brands saw significant rises, while B&M warned of profit drops. British housing prices rose slower than expected. The market remains cautious amid fiscal concerns and the U.S. government shutdown.

On Tuesday, the FTSE 100 index in London concluded trading with a minimal increase of 0.05%, as the energy sector's growth countered declines in retail stocks. In contrast, the mid-cap FTSE 250 dipped 0.44% after B&M, a key retailer, anticipated a significant drop in annual profit due to weak sales, leading to a 7.8% fall in its share price.

Halifax's latest report revealed a mere 1.3% increase in British housing prices over 12 months, marking the weakest growth since April 2024. Homebuilders Vistry and Bellway also saw declines, which impacted the household goods and construction sector, lowering it by 1%.

Despite these setbacks, energy stocks rose roughly 1%. Notably, Shell's shares increased by 1.5% after the company revised its LNG production forecast upwards for the third quarter. Investors remain cautious, faced with potential broad fiscal and political challenges, including the recent resignation of the French prime minister and the ongoing U.S. government shutdown.

(With inputs from agencies.)