London’s FTSE 100 fell 0.07% to 10,878.12 on August 26, its first modest decline in seven sessions, while the mid-cap FTSE 250 rose 0.17%. Healthcare and oil stocks weakened, with the FTSE 350 oil & gas index down 0.67% and the healthcare index lower by 1.12%. The US Commerce Department said the July Personal Consumption Expenditures (PCE) price index rose 3.7% from a year earlier, above the 3.6% market expectation, modestly strengthening the case for a Federal Reserve rate hike in September and weighing on European equities. Investors also monitored continuing Iran-Oman negotiations over the Strait of Hormuz and prepared for Nvidia’s upcoming earnings. Sage Group fell 3.8%, Relx dropped 1.2% and Experian declined 1.4%, while Unilever gained 0.2%, Imperial Brands rose 1.5% and British American Tobacco climbed 2.5%. Hochschild Mining surged 5.4% after reporting a 62% year-over-year increase in first-half 2026 revenue. The STOXX Europe 600 edged down 0.01% to 656.41, while the Euro STOXX 50, Xetra DAX and CAC 40 gained 0.23%, 0.08% and 0.27%, respectively. Banks outperformed, with the STOXX eurozone bank index up 0.97%; Deutsche Bank rose 4.3% and Commerzbank gained 2.8%. Eurozone bond yields edged higher after the US inflation data, while Brent crude fell 1% to $87.80 a barrel and gold remained supported by Middle East uncertainty. Market focus now turns to the Jackson Hole symposium from August 27 to 29, Fed Chair Warsh’s August 28 speech and the ECB’s July meeting minutes, with ECB officials telling Reuters that the central bank is prepared to raise rates in September but reluctant to signal further increases.