The Blue-Chip index began Tuesday modestly lower, drifted further by lunchtime and then accelerated its losses in the afternoon to finish at 10,638.43.

Early on Tuesday 3 November 2026, the FTSE 100 was sitting at about 10,705, according to Reuters via MarketScreener. By midday, Share Talk had the index at roughly 10,687.72. By the closing bell it had settled at 10,638.43, down 122.90 points, or 1.14%, from Monday's close of 10,761.33.

That sequence matters. A market that opens weakly and then recovers tells a very different story from one where selling builds as the day wears on. On Tuesday, the pressure deepened in the afternoon, turning what had looked like a moderate pullback into the FTSE 100's steepest one-day fall in a month, according to Reuters. It also ended a run of four consecutive daily gains, so the session marked a clear change in tone after a steady climb.

Morning to midday: a soft start, then miners

The overnight backdrop was mixed. Oil had fallen roughly 7% on Monday, with Brent settling at $104.77 and West Texas Intermediate at $96.46. In Asian trade early on Tuesday, Brent ticked up to about $105.25 after The Wall Street Journal, citing US officials, reported a US strike on Iran's Qeshm Island. Officials described the action as defensive, intended to stop Iran attacking commercial shipping in the Strait of Hormuz.

Tim Waterer, chief market analyst at KCM Trade, said the report "added a degree of risk premium back into the oil price." Before the conflict began in late February 2026, roughly one-fifth of the world's Crude Oil and Natural Gas shipments passed through the strait, which helps explain why news from the region carries such weight for markets.

At the same time, two large companies released numbers before the open. Associated British Foods (LSE:ABF) published full-year results alongside a forecast of lower profit for its 2027 financial year, and Coca-Cola Europacific Partners (LSE:CCEP) issued a third-quarter trading update that flagged cost pressures. Both stocks came under pressure early in the day.

By lunchtime, the sell-off had spread into the resources sector. Midday reports from Reuters, carried by Share Talk, said industrial metal miners had dropped to their lowest in almost four months as copper slid to seven-week lows, while precious metal miners were down about 2.7% at a three-month low. Anglo American (LSE:AAL) was about 2.8% lower at that point.

ABF was around 3% down at midday and CCEP about 2.4% down. Aerospace and defence shares had slipped around 1.2%, with Rolls-Royce (LSE:RR.) and RELX (LSE:REL) each more than 1.6% lower, although no company-specific reason was given for either.

Afternoon: losses deepen

The afternoon brought the decisive leg lower. From roughly 10,687.72 at midday, the index gave up a further sizeable slice of value to finish at 10,638.43. By the close, the FTSE 350 basic resources index was down 2.6%, with Antofagasta (LSE:ANTO) off 3.5% and Glencore (LSE:GLEN) 2.8% lower. Endeavour Mining (LSE:EDV) also declined alongside other precious metal producers.

Banks were another heavy weight. The FTSE 350 banks index fell 1.6%, and HSBC (LSE:HSBA) dropped 2.0%, making it the biggest approximate drag on the FTSE 100 in points terms. The FTSE 100 is weighted by market capitalisation, so moves in a very large lender can shift the index more than bigger percentage swings at smaller constituents.

Not every intraday story worsened. ABF trimmed its losses to finish 2.2% down, and CCEP closed 2.1% lower, both slightly better than their midday levels. Hiscox (LSE:HSX), which had opened up 2.8% at 1,935p after reporting a 9.5% rise in nine-month premiums, held on to its advance and closed 2.9% higher.

Why the afternoon mattered

Several factors may help explain why selling intensified later in the session. Crude slid about 2% on Tuesday in volatile trading, as investors weighed talks aimed at ending the wars in Ukraine and Iran. Iran said its contacts with Washington were continuing, but Qatari-mediated talks ended without a breakthrough. Reuters linked elevated oil prices to Inflation fears, noting that many central banks have already raised rates.

That ties directly into the UK's own rate outlook. The Bank of England's Monetary Policy Committee announces its decision on Thursday 5 November, and a 25 basis point rise from 3.75% to 4% is widely expected, which would be the first increase since August 2023. Banks fell ahead of that decision, suggesting investors were adjusting positions rather than waiting to see the outcome.

The US calendar may have added to the caution. Tuesday was midterm election day, with all 435 House seats and 35 Senate seats up for election. Reuters said a Democratic showing was considered priced in, and no results were available during the London session. Ahead of a significant overnight event, some traders prefer to reduce exposure late in the day rather than carry it through, which can add to afternoon selling.

For comparison, the mid-cap FTSE 250 fell a more modest 0.5% to 24,674.91, helped in part by a 6.6% jump in Drax Group, a FTSE 250 stock, after it announced a data centre Partnership with Brookfield Asset Management and Radiant.

Key dates to watch

Wednesday 4 November:Marks & Spencer half-year results, plus updates from Barratt Redrow, Coca-Cola HBC, Prudential and others; eurozone inflation figures (expected 3.9%).

Thursday 5 November:Bank of England MPC decision, with a 25bp rise to 4% widely expected.

Friday 6 November:IAG third-quarter results and the US October jobs report.

Thursday 12 November:ONS first quarterly GDP estimate for July to September 2026 (7:00am).

Wednesday 2 December:FTSE Russell December quarterly review announcement, after the UK close.

The bottom line

Tuesday's 1.14% decline was not a single gap lower but a slide that gathered pace through the day. A soft start became a broader retreat as miners sank with copper, and the afternoon added further losses as banks and other heavyweights weakened ahead of Thursday's rate decision. The intraday path, from about 10,705 in the morning to 10,638.43 at the close, suggests that caution grew rather than faded as the session went on. How the index behaves in the days around the Bank of England announcement may show whether that late selling reflected lasting concern or simply positioning before a busy week.