Middle East Tensions Dampen FTSE 100

(RTTNews) - With the Israel-Iran conflict raging unabated, sentiment weakened broadly, dragging down the FTSE 100 benchmark of the London Stock Exchange. Markets are also bracing for the inflation update due on Wednesday as well as Bank of England's interest rate decision scheduled for Thursday.

The FTSE 100 oscillated between 8,875.22 and 8,809.91 even as markets anticipate a softening in consumer price inflation. Looming war clouds as well as the assessment that Bank of England would not ease rates this time weighed heavily on sentiment. The index had closed at 8875.22 on Monday.

The benchmark index of the London Stock Exchange is currently trading at 8,842.15, having shed 0.37 percent on an overnight basis.

In the 100-scrip index, only 22 are trading in the overnight green zone.

BP gained 1.6 percent. Associated British Foods and Shell, both rallied 1.2 percent. Bunzl slipped 2.87 percent. Sports-betting and gaming company Entain slipped close to 2 percent after a massive spike on Monday. Standard Chartered, International Consolidated Airlines Group, and Pershing Square Holdings, all erased more than 1.5 percent.

The GBP/USD pair has slipped 0.14 percent overnight to 1.3567. The sterling ranged between $1.3592 and $1.3542 in the day's trade. The EUR/GBP pair edged up to 0.8526. The GBP/JPY pair has however declined 0.23 percent to 196.08.

Bond yields in the U.K. are currently trading slightly below the flatline. Ten-year bond yields have edged down 0.04 percent to 4.5320 percent. The yields ranged between 4.5830 percent and 4.5240 percent over the course of the day. The same was 4.5340 percent a day earlier.