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UPDATE 1-Britain's FTSE falls as Fed stalls election rally; miners sink on weak prices

Published 10/11/2018, 03:59 am
Updated 10/11/2018, 04:00 am
UPDATE 1-Britain's FTSE falls as Fed stalls election rally; miners sink on weak prices
UK100
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CSGN
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CFR
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BRBY
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ANTO
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FRES
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FTMC
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FTNMX551030
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GLEN
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IGY
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* FTSE 100 ends down 0.5 pct, but ekes out gains on the week

* FTSE 250 falls 0.8 pct on weak pound

* Weak metal prices hurt miners

* Informa shines after trading update (Adding details, updating prices)

LONDON, Nov 9 (Reuters) - UK shares fell on Friday, ending two days of gains as weak metals prices weighed, Burberry sank 5 percent and Wall Street opened lower after a hawkish Federal Reserve statement renewed worries about an imminent interest rate hike.

The FTSE 100 .FTSE closed down 0.5 percent as negative sentiment on Wall Street and in Asia spilled over across European bourses, while the domestically focused mid-cap index .FTMC was 0.8 percent lower, also dragged lower by a weaker sterling.

The blue-chip index notched up small gains on the week as it continued to recoup ground lost in October. The FTSE 250 was down 1.1 percent for the week.

As the pace of earnings releases slows, investors focused on news that the U.S. Federal Reserve held interest rates as widely expected but indicated it was set for another rate hike in December despite worries about the U.S.-China trade war and political uncertainty.

Falling base and precious metal prices as the dollar strengthened and lingering worries about Chinese demand knocked the mining sector .FTNMX1770 down 3.7 percent, for its worst day in a month. Weaker oil prices also dragged.

Antofagasta ANTO.L , Fresnillo FRES.L and Glencore GLEN.L were all down more than 4 percent. GOL/ MET/L

"Investors are concerned that China is slowing down, and the drop in PPI overnight adds weight to the argument," said David Madden, market analyst at CMC Markets UK.

Burberry BRBY.L was dragged down 5 percent to the bottom of the bourse as a cautious outlook from Richemont CFR.S spooked the luxury goods sector. SSE.L shares lost 2.5 percent, their weakest performance in nearly two months, after the energy supplier said it was renegotiating terms with Innogy IGY.DE on a proposed retail energy tie-up, reigniting concerns about the outlook for the UK retail market. topped the leader board, up 2.7 percent, after confirming it is on track to meet full-year targets and reported 3.9 percent sales growth in the first ten months of the year. AAAA.L was the second-biggest faller on the mid-cap, down 7.5 percent after Credit Suisse (SIX:CSGN) downgraded the stock.

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