Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Mining shares drag Britain's FTSE lower, but ITV shines

Published 25/07/2018, 07:12 pm
Mining shares drag Britain's FTSE lower, but ITV shines
UK100
-
RIO
-
AAL
-
BDEV
-
ANTO
-
PSN
-
INF
-
ITV
-
TW
-
HG
-
FRES
-
FTMC
-
FTNMX551030
-
GLEN
-
INDV
-

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* FTSE 100 down 0.6 pct

* Miners cool after strong previous session

* ITV rises after decent update, but Informa slides

* Indivior plunges on warning of bigger hit from copycat drug

By Kit Rees

LONDON, July 25 (Reuters) - The UK's top share index fell on Wednesday as mining stocks lost ground, with earnings in focus as ITV and Informa issued updates.

`

The blue-chip FTSE 100 .FTSE index was down 0.6 percent at 7,660.21 points by 0851 GMT. Mid caps .FTMC declined 0.3 percent.

Mining shares took the most points off the index, with the sector .FTNMX1770 down 1.6 percent following Tuesday's 5 percent rise as copper prices slide. MET/L

Shares in Fresnillo FRES.L , Rio Tinto RIO.L. , Anglo American AAL.L , Antofagasta ANTO.L and Glencore GLEN.L fell 1.1 percent to 4.3 percent.

Mining companies, along with other cyclical stocks, have come under pressure as the trade dispute between the United States and China has escalated.

The broader European market was also lower before a meeting between European Commission President Jean-Claude Juncker and U.S. President Donald Trump. The meeting will focus on trade tensions after the United States imposed tariffs on EU steel and aluminium.

"It was a strong start to the week yesterday and I think we're back to looking at the potential negatives and people ... are taking risk off the table," said Mike van Dulken, head of research at Accendo Markets. Production updates from Fresnillo and Antofagasta were also weighing on the sector, he said.

Event organiser Informa INF.L saw its shares drop 3.8 percent after the company reported half-year results. Informa's outlook suggested a slower pace of growth, Accendo Market's van Dulken said cheered ITV's ITV.L half-year update, which sent its shares up as much as 2.5 percent higher before paring some gains to trade up 0.6 percent. The commercial broadcaster said that the World Cup and "Love Island" had contributed to an 8 percent jump in revenue have struggled with the rise of online streaming services and volatile advertising revenue, but ITV's shares have managed a 3.4 percent gain so far in 2018 following two years of losses.

British housebuilders also topped the index, with shares in Taylor Wimpey TW.L , Barratt Developments BDEV.L and Persimmon PSN.L rising 1.1 to 1.6 percent after Berenberg issued a supportive note on the sector. Its analysts said they thought that fears around the UK housebuilding were "overdone".

"The macro outlook remains supportive; housing is still affordable in most regions of the UK; and, with the support of the government's Help to Buy (HTB) scheme, we expect the new build sector to continue to outperform the wider market," the analysts said.

Among mid caps, shares in Indivior INDV.L plunged more than 20 percent after the drugmaker reported a second straight drop in quarterly profit and warned of a bigger-than-expected blow from the launch of a copycat of its best-selling opioid addiction treatment

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.