The U.K.'s FTSE 100 index is drifting lower on Tuesday with nearly two third of its components losing ground amid uncertainty about near term growth outlook for global economy due to trade related issues.
Also, with some key economic and political events scheduled for the week, investors appear a bit reluctant to make significant moves.
In the US midterm elections, it is expected that the democrats will regain control of the House while Republicans hold on to a slender majority in the Senate. Reuters is of the view that global stocks may rally on hope of more tax cuts if Republicans retain their House majority.
The benchmark FTSE 100 index is down 22.34 points, or 0.31%, at 7081.50. On Monday, the index ended 0.14% up.
Morrison Supermarkets, the most prominent loser in the index, is down as much as 5.5%. Intertek, Dixons Carphone, WPP, CRH and British American Tobacco and BT Group are lower by 1.7 to 2.2%.
Persimmon, Intercontinental Hotels, Vodafone Group, Kingfisher, DFC and Standard Life are also notably lower.
Among the gainers, Associated British Foods is up 3.3%, Hikma Pharma is rising 2.8% and Babcock International is moving up 2.6%. Burberry Group, Experian, Provident Financial, Randgold Services and Centrica are also up with strong gains.
A report from IHS Markit and the Chartered Institute of Procurement & Supply on Monday showed the service sector in UK to have registered its slowest rate of expansion in seven months in October. The services Purchasing Managers' Index dropped more-than-expected to 52.2 in October from 53.9 in September. The expected level was 53.4.
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