FTSE 100 Drops as UK Miners Slide

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FTSE 100 Drops as UK Miners Slide

UK shares declined a seven-week peak, led by a flop in miners.

Rio Tinto Group and Antofagasta Plc each shed more than 2%. CSR Plc increased the most in two years after announcing its assessing options for the business, Bloomberg reported. CRH Plc was up 1.7% after Credit Suisse Group AG raised its recommendation for the stock, and Wm Morrison Supermarkets Plc soared 1.2% after Deutsche Bank AG upgraded the stock.

The FTSE 100 Index lost 28.47 points or 0.4% to 6,802.19 as of 11:23 am in London. The blue-chip index advanced 4% from an Aug. 8 low to yesterday, registering the highest point at the close since July 4. The broader FTSE All-Share Index reversed 0.5% on Thursday, while Ireland’s ISEQ Index plunged less than 0.1%.

Data released today showed that economic sentiment in the euro zone declined more than projected, with a gauge of executive and consumer confidence sliding to 100.6 in August from a revised 102.1 last month, the European Commission said.The median economist outlook was for tumble to 101.5.

Rio Tinto was down 3.1% to trade at 3,231 pence, while Antofagasta plummeted 2% to 792 pence. A measure of miners listed in the FTSE 350 Index declined the most in three weeks, to hit a six-week low. A gauge of commodity producers in the Stoxx Europe 600 Index recorded the biggest slide among 19 industry sectors. Anglo American Plc descended 2.5% to 1,529 pence.

Randgold Resources Ltd soared 1.4% to 5,010 pence, while gold and silver soared for a third day.

Morison climbed 1.2% to 186.6 pence.

Adrian Slack of Novum Securities was upbeat that any withdrawal on the FTSE should be comparatively short-lived.

“I think we’re just pausing for breath before we go higher at the end of the year. The downside looks pretty limited,” Reuters quote Slack as saying.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com