FTSE 100 steady as Shell and BP gains offset broader weakness

The FTSE 100 was little changed on Tuesday and underperformed other European markets as losses in defensive stocks offset gains in energy shares, extending a cautious start to the week. AstraZeneca fell around 1%, GSK dropped more than 1.5% and Unilever declined about 0.6%, while Shell rose 1.4% and BP gained 1.8%. Earlier support for the oil majors had come from supply concerns linked to a possible US-Iran arrangement and the Strait of Hormuz, but renewed hopes for a deal after Pakistan signaled the two sides could be nearing an agreement eased some of those worries and trimmed the recent crude rally. InterContinental Hotels Group fell more than 2% despite first-half profit above expectations, Bellway warned that the near-term outlook remained uncertain even after beating forecasts for home completions and housing revenue, and UK consumer indicators were mixed, with July retail sales up 1.3% year on year and Barclays reporting 2% spending growth, its strongest this year.

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