- BP and Shell shares fall as falling oil prices pressure energy stocks
- UK inflation expectations rise in August after recent falls, survey shows
- Housebuilders, retailers and miners lead gains
Aug 26 (Reuters) - London's FTSE 100 was muted on Wednesday as a slide in oil prices pressured energy stocks and offset broader gains, while investors awaited key U.S. inflation data and Nvidia's quarterly earnings.
The blue-chip FTSE 100 index was little changed at 10,875.87 points by 1027 GMT, while the midcap FTSE 250 rose 0.3%.
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Oil prices fell more than $2 a barrel after Iran said it had restarted talks with neighbouring Oman on managing the Strait of Hormuz.
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Tehran said the discussions covered a "joint temporary navigational corridor" through the waterway and an agreement to clear mines, raising hopes that shipping constraints in the key Middle East route could ease.
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The decline in crude prices sent the energy sector down 1.8%, with oil majors BP and Shell falling 1.4% and 2.4%, respectively.
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Luxury retailers gained 1%, housebuilders rose 2%, and the travel and leisure sector advanced 1%.
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The precious metals and industrial mining sectors also rose 1.8% and 1%, respectively, even as metals retreated from recent highs ahead of crucial U.S. inflation data that could offer fresh clues on the Federal Reserve's interest-rate outlook.
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Software stocks declined, led by a 3.5% fall in Sage Group. Relx and Experian were down between 1% and 1.4%.
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Investors were also keeping an eye on Nvidia's second-quarter earnings later in the day to gauge whether the AI-driven spending boom can continue supporting lofty market valuations.
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Meanwhile, public inflation expectations in Britain rose in August, changing course after falling in recent months, a survey from U.S. bank Citi and pollsters YouGov showed on Tuesday.
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Among the mid caps, miner Hochschild Mining climbed 8.6% after first-half revenue rose 62% from a year ago, making it one of the FTSE 250's top gainers.
Reporting by Anand Gopal in Bengaluru; Editing by Diti Pujara
Source: Reuters