FTSE 100 Falls as Spirax and Insurers Drag Index Lower

London Stock Exchange

London’s FTSE 100 experienced a decline for the second consecutive session on Tuesday, driven by a significant drop in shares of Spirax due to the valve maker’s disappointing outlook. Additionally, Legal & General spearheaded a selloff in the insurance sector following several broking downgrades.

The blue-chip FTSE 100 index fell 0.1% to 10,851.58 points by 1016. The midcap FTSE 250 fell 0.3% to 24,678.20 points.

  • Spirax opened a new tab as shares fell 6%, making it the biggest decliner in the FTSE 100, following the company’s decision to maintain its annual forecast despite an increase in first-half results.
  • Shares of Legal & General dropped 4.4% following downgrades from UBS and Goldman Sachs, which changed their rating on the stock to “sell” from “neutral.” UBS identified peak valuations, diminishing margins from its pension risk transfer operations, and a declining solvency ratio as contributing factors to the downgrade.
  • Goldman cautioned that the company’s new strategy, heavily focused on gilts, provides optionality but compromises margins and earnings visibility.
  • An index of FTSE 350 insurers dropped 2.6%, with shares of Standard Life and Prudential also coming under pressure.
  • Global stocks declined as oil prices increased following a stalemate in negotiations between the United States and Iran regarding a peace agreement and the reopening of the Strait of Hormuz.
  • Investors are anticipating U.S. inflation data later today, alongside second-quarter UK GDP data on Thursday, to assess the monetary policy trajectory in both regions.
  • British consumers increased their expenditure on food and in pubs last month, driven by England’s progression to the World Cup semi-finals and favourable weather conditions that enhanced clothing sales. However, they continued to exhibit caution regarding significant expenditures, as indicated by surveys released on Tuesday.
  • The British Retail Consortium’s total retail sales measure increased by a modest 1.3% from July 2025, a deceleration from the 1.9% growth observed in June.
  • Among other movers, IWG opened a new tab and dropped 1.9% after Jefferies warned of cash flow headwinds, even as the office space provider maintained its annual and medium-term targets.
  • InterContinental Hotels Group opens new tab slipped 1.3% as room revenue growth slowed in the second quarter, with a sharp decline in the Middle East offsetting continued gains in the United States and China.