The FTSE 100 lost almost 40 points and ended lower on Tuesday at 7,634.52 points.
The index opened on a stronger note after reaching a three-week high on Monday. However, towards the closing hours of trading, the stocks went down in sync with their U.S. counterparts. The U.S. equities felt pressure from higher oil prices and weaker employment data.
The pound gained strength against the dollar and traded at its highest point above $1.25 since June 2022. This came as a blow to UK companies with greater exposure to international markets.
The FTSE 250 was also down by 0.34% to 18,815.04.
On the company side, the biggest news came from Richard Branson-led Virgin Orbit Holdings (NASADQ:VORB), which filed for Chapter 11 bankruptcy. The company is part of the UK-based Virgin Group and is struggling to secure any further funding after its January launch was a failure.
As part of the deal, Rathbones will acquire Investec’s UK business for £839 million. This merger will bring two giants under one brand, which will manage around £100 billion in assets.
Meanwhile, Saga PLC (GB:SAGA) lost 16% after the company posted higher pre-tax losses for the fiscal year 2023 in its preliminary results. The insurance company catering to people aged 50 and older is currently struggling with falling sales in its motor and home segments.
OKYO Pharma Ltd. (GB:OKYO) was down by more than 20% after it announced its intention to delist from the London Stock Exchange.