London stocks slipped on Tuesday as investors assessed the chances of an earlier US rate cut against a backdrop of faltering manufacturing activity that could hurt corporate profits, while energy stocks further added to losses.

The blue-chip FTSE 100 index was down 0.4% as of 7:12 GMT.

The mid-cap FTSE 250 dropped 0.6%.

Energy stocks BP and Shell fell 2.3% and 1.9%, respectively, after ratings agency S&P Global revised lower BP’s credit outlook while the latter fell as oil prices slipped 1%.

Investors weighed the potential relief of a September rate cut by the Federal Reserve against the backdrop of a second consecutive dip in US manufacturing activity that could erode revenue for global companies listed on the benchmark index.

Pharma, energy stocks drag London’s FTSE 100; ECB rate cut hopes cap losses

However, losses were capped as focus turns to the European Central Bank (ECB), which meets on Thursday and is anticipated to trim interest rates by 25 basis points.

Among other stocks, Tritax Eurobox was the top gainer on the mid-cap index with a 5.7% jump after Brookfield Asset Management said it is in early stages of a possible offer for the company.