Rolls-Royce (LSE:RR.) and RELX were each down more than 1.6% by midday on Tuesday without any company-specific news, a sign of how far the FTSE 100's sell-off spread beyond miners and banks.

Not every faller on a bad day has a story of its own. On Tuesday 3 November, the headlines belonged to copper miners, banks and companies that had published results. Yet two of the FTSE 100's best-known names outside those groups, Rolls-Royce (LSE:RR.) and RELX (LSE:REL), were each trading more than 1.6% lower at midday, according to market reports compiled by Trading and Investment News. No company-specific reason was given for either move.

That absence is the interesting part. Rolls-Royce, the aero-engine and power systems group, and RELX, the information and analytics company, have very little in common operationally. When two such different businesses slip by similar amounts on the same day, with no news to explain it, the likeliest driver is the wider market mood rather than anything happening inside either company.

The FTSE 100 closed at 10,638.43, down 122.90 points or 1.14%, ending a run of four straight gains. Reuters called it the index's steepest one-day fall in a month.

A sell-off that broadened through the day

The decline began with familiar culprits. Copper fell to a seven-week low, and the FTSE 350 basic resources index dropped 2.6%. Antofagasta (LSE:ANTO) lost 3.5% and Glencore (LSE:GLEN) 2.8%. Banks were weak too, with the FTSE 350 banks index down 1.6% ahead of Thursday's Bank of England decision and HSBC (LSE:HSBA), down 2.0%, the biggest approximate drag on the index in points terms.

But selling did not stay confined to those sectors. Aerospace and defence shares were down about 1.2% at midday, placing Rolls-Royce in a sector that was itself under pressure, even if the stock's own decline was steeper. The index path tells a similar story of spreading weakness: about 10,705 early in the morning, around 10,687.72 at midday and 10,638.43 at the close. In other words, the market lost further ground in the afternoon after the midday snapshot that captured the Rolls-Royce and RELX moves.

It is worth noting a limitation. The figures for both companies come from midday reporting, and the fact sheet used here does not record their closing prices or final percentage changes. They joined the retreat, but the exact size of their moves by the end of the session is not available from these sources. Given that the index weakened further after midday, it would be speculation to assume either stock recovered or fell further, so this article sticks to the midday figures that were reported.

Why quality names get sold too

Large, liquid companies are often among the first to be sold when investors want to reduce overall exposure. In general terms, that is partly practical. Big funds that decide to cut risk can do so quickly in the most heavily traded stocks without moving prices as much as they would in smaller ones. Index-tracking and sector-based products can add to the effect, since selling an index basket means selling every constituent in proportion to its weight.

There is also a valuation dimension that commentators often discuss when interest rates are expected to rise. Higher rates can reduce the present value that investors attach to future earnings, and companies whose appeal rests on steady Long-term Growth can sometimes feel that effect. This is a general principle rather than an explanation the sources attach to Tuesday's moves, but it is relevant context in a week dominated by Central Bank expectations.

The Bank of England announces its decision on Thursday 5 November, with a 25 basis point rise from 3.75% to 4% widely expected. That would be the first increase since August 2023. Money markets have fully priced four such moves by next September, according to LSEG data cited by Reuters, while ING has argued that "the worsening energy crisis has made it much harder for the Bank not to act."

The macro backdrop

Energy markets added to the uncertainty. Crude slid about 2% on Tuesday in volatile trade after falling roughly 7% on Monday, according to Reuters, as investors weighed talks aimed at ending the wars in Ukraine and Iran. Brent had settled on Monday at $104.77 a barrel. Elevated oil prices have fuelled Inflation fears, and many central banks have raised rates in response.

Across the Atlantic, Tuesday was US midterm election day, with all 435 House seats and 35 Senate seats up for election. Reuters reported that a Democratic showing was described as priced in. Both Rolls-Royce and RELX have significant international operations, so global events and currency movements can matter to how their shares trade, alongside domestic interest-rate expectations. Sterling stood at about $1.3417 on Monday.

For illustration, a hypothetical holding worth £5,000 that fell by 1.6% would lose £80 in value, leaving £4,920. That calculation simply shows the scale of a move of that size.

Key dates to watch

Wed 4 Nov:Eurozone inflation figures, expected at 3.9%.

Thu 5 Nov:Bank of England MPC decision; a 25bp rise to 4% is widely expected.

Fri 6 Nov:US October jobs report, relevant for dollar earners.

Thu 12 Nov:ONS first quarterly GDP estimate for July–September 2026, at 7:00am.

Tue 1 Dec:FTSE Russell December review market-cap data cut-off.

Wed 2 Dec:December review announcement, after the UK close.

The bottom line

Rolls-Royce and RELX were not in the headlines on Tuesday for anything they announced. Instead, their midday declines of more than 1.6% showed how a sell-off that started in Mining and banking spread across the FTSE 100. With no company-specific reason reported, the moves are best read as part of a cautious, rate-focused market ahead of the Bank of England's decision. Whether that caution persists will depend heavily on Thursday's outcome and the data that follows, rather than on anything specific to either company this week.