Investors are laser-focused on potential interest rate cuts in both the US and UK, and the ripple effects of regulatory actions on specific sectors. London stocks opened lower on Tuesday, with the FTSE 100 dipping 0.5%. This follows mixed performances in Asian markets and a cautious mood ahead of key UK inflation data.

In a speech yesterday, US Federal Reserve Chair Jerome Powell was confident that inflation is inching towards the 2% target, hinting at possible interest rate cuts. Meanwhile, Bank of England rate-setter Swati Dhingra also pushed for rate cuts to ease the burden on British households, with UK interest rates currently at a 16-year high of 5.25%.

In the corporate arena, B&M European Value Retail reported a 5.1% drop in like-for-like UK revenue for the first quarter of its fiscal year 2025, blaming the decline on wet weather dampening seasonal item sales. However, total revenue grew 2.4% to £1.35 billion. Despite the setback, B&M remains optimistic about profitable growth for the fiscal year.

Ocado Group managed to narrow its pretax loss to £153.9 million for the first half of the year, from £289.5 million a year earlier, with revenue up 13% to £1.54 billion. The company’s upbeat full-year financial guidance sent its stock soaring by 15%.

Experian announced the exit of COO Craig Boundy, who is set to become CEO of McAfee. The company also reported a 7% increase in revenue for Q1 FY2024.

Rio Tinto’s Q2 iron ore shipments fell short of analyst expectations, causing a 2.4% drop in its shares and a 1.3% decline in the industrial metal miners sector.

Shares of United Utilities and Severn Trent slipped, following a regulatory probe into wastewater management practices.

Investors are eagerly awaiting US retail sales data and UK consumer and producer prices data, which will play a crucial role in shaping the Bank of England's upcoming monetary policy decisions.