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01.09.202607:36:28UTC+00FTSE 100 Falls on Tuesday

The FTSE 100 slipped around 0.4% on Tuesday, lagging a generally weaker European market. Gains in oil majors Shell and BP were not enough to offset broader declines, even as Brent crude rose above $90 a barrel, reinforcing worries that sustained energy costs could keep inflationary pressures elevated.

On the domestic front, the latest BRC data showed UK shop price inflation accelerating to its fastest pace in two years, with overall prices up 1.5% year-on-year in August and food prices rising 2.8%. The housing market also showed slightly stronger momentum: UK house prices increased by 0.2% in August, a modest pickup from July and ahead of expectations, according to Nationwide.

Merger and acquisition activity remained a key theme. Telecoms group Gamma Communications received a takeover proposal from UK private equity firm Epiris. Meanwhile, FTSE 250 constituent Bodycote agreed to a £1.65 billion acquisition by US investment firm Veritas Capital following a competitive bidding process, with shareholders to receive roughly 940 pence per share in cash.

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