LONDON (Reuters) - UK shares retreated on Tuesday as the positive impact of a deal on North American free trade faded globally and shares of Royal Mail
At 0909 GMT, the benchmark FTSE 100 <.FTSE> was losing 0.6 percent at 7,460.75 points but outperforming continental indexes hit by concerns over Italy's 2019 budget. [.EU]
Britain's listed blue chips failed to receive an accounting boost from the pound falling to a three-week low, with investors growing anxious about a conflict over Prime Minister Theresa May's Brexit plan.
Weighing on the British stock market was Royal Mail
"We have been bearish on the outlook for productivity improvements, but yesterday's profit warning was shocking in its scale and timing," Liberum analyst Gerald Khoo said.
Shares of the company, founded under Henry VIII, plunged 18 percent on Monday after it warned its shareholders annual profits would be far lower than expected, hurt by eroding logistics business margins and weaker letter volumes.
Uncertainty was still palpable in the travel sector after Ryanair's
Oil majors were a rare sector of gains with U.S. oil prices hitting their highest level since November 2014 as markets prepared for tighter supply once U.S. sanctions against Iran kick in next month.
(Reporting by Julien Ponthus; Editing by Jon Boyle)