The FTSE 100 fell 0.7% on Tuesday, its first session after a holiday, but outperformed European peers amid a wider selloff. Retailers led declines after Deutsche Bank issued downgrades on concerns about slowing discretionary spending. Kingfisher dropped 4% and AB Foods fell 3.5% as analysts warned that real wage growth is set to ease while unemployment fears rise, pointing to weaker consumer demand in late 2025 and 2026. In contrast, Bunzl jumped over 5% after reaffirming guidance, resuming its buyback, and easing investor worries following April’s profit warning. Analysts highlighted relief as shares had already fallen sharply ahead of the update. On the monetary policy front, the Bank of England’s Catherine Mann signaled that interest rates should remain on hold.