(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Bunzl falls on flagging supply chain disruptions
* Blue Prism Group jumps on talks over possible offer
* Blue-chip index records best monthly gains since April
* FTSE 100 down 0.4%, FTSE 250 adds 0.2%
(Updates to close)
By Devik Jain and Amal S
Aug 31 (Reuters) - London's FTSE 100 ended lower on Tuesday,
mainly due to weakness in financials and commodity-linked
stocks, although the blue-chip index posted its best month since
April.
The FTSE 100 fell 0.4% to its worst session in
nearly two weeks, weighed by a 1.4% drop in banks
, while both energy and miners
were down 1.5% and 0.3% respectively.
"We've seen a bit of a pullback in the commodities. And
there may be a little bit of profit-taking in the market after
Powell's dovish comments on Friday and now we're just seeing a
corrective move on that," said Craig Erlam, senior market
analyst at Oanda, referring to comments by the head of the U.S.
Federal Reserve, Jerome Powell, on stimulus tapering.
UK markets were closed on Monday for a public holiday.
The FTSE 100 has gained about 10.2% so far this year, but
continues to lag its European and U.S. peers as a resurgence in
coronavirus cases across the world has sparked concerns of a
slowdown in global economic growth.
However, the blue chip index ended August up 1.2%, its best
monthly performance since April, helped by solid earnings and
easing fears about early tapering of central bank support.
"There's no strong determination for central banks to pull
back stimulus at this point and that kind of put market in a
healthy position going into next couple of months," Erlam added.
Investors now await Markit/CIPS business activity data for
August due later this week.
Bunzl Plc fell 1.6% and was among the top drags
after the business supplies distributor flagged supply chain
disruptions, product shortages and a labour crunch in certain
markets including Mexico, Australia and Britain.
The domestically focussed mid-cap index climbed 0.2%
hitting a record high and marked its best month since December.
Among other stocks, Blue Prism Group gained 32.2%
after the British automation software company said it was in
talks with American private equity firms TPG Capital and Vista
Equity Partners over a possible offer.
Weir Group jumped 3.8% to the top of FTSE 100 after
Peel Hunt upgraded the engineering company to "buy" from "hold".
(Reporting by Devik Jain and Amal S in Bengaluru; Editing by
Subhranshu Sahu)