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FTSE 100 stocks give up 7,000 level as miners come off on copper warning

Last updated: 17:45 26 Oct 2016 BST, First published: 06:55 26 Oct 2016 BST

London bridge and the skyline

 

FTSE 100 stocks gave up the 7,000 level on Wednesday as mining stocks dragged the market lower.

Mining shares lost their allure after Antofagasta (LON:ANTO) predicted lower copper output next year.

Shares in the Chilean mining company sank 3.2% to 523p on the news, making it the second-biggest faller in the FTSE 100. Elsewhere in the mining sector, Anglo American (LON:AAL) was down 2% to 1092p. while Fresnillo (LON:FRES) lost 2.1% to 1608p and Glencore (LON:GLEN) down 2.2% to 240.85p.

The blue-chip FTSE 100 shed 0.9% to 6,959 and led by Whitbread (LON:WTB) down 4.6% to 3528p after broker Societe Generale downgraded the stock to hold with a target price of 4100p.

The mid-cap FTSE 250 closed down 0.8% at 17,668 and led by Petrofac (LON:PFC) down 4% to 869p.

The FTSE AIM 100 Index ended up 0.1% at 3961 but the FTSE AIM All-Share Index finished down 0.1% at 824.

London’s gainers were outgunned by the losers 44% to 20%.


3.45pm...Gold and oil 

The price of an ounce of gold came under pressure again ahead of what’s traditionally a strong period for the precious metal.

Diwali, the Hindu festival of light, normally coincides with an uptick in demand for gold, which is given and received over the five-days of celebration.

While the spot price was down US$3.33 an ounce Wednesday at US$1,268, prices on the sub-continent are steadily edging up, according to the Reuters news agency.

Brent crude, meanwhile, bobbed back above US$50 a barrel after it a surprise fall in US oil stockpiles.

  • FTSE 100 dips below 7,000 ... again

  • Lloyds and Antofagasta on loser's board.

  • Genel Energy hit by production warning

  • Hopes fade of an interest rate rise next week

  • Whitbread among top Footsie losers

FTSE 100 still down in the dumps at lunch - 12.54pm

FTSE 100 was still lower at lunch as hopes of a UK rate rise next week began to fade and copper giant Antofagasta (LON:ANTO) was still top loser, down over 7%.

The pound strengthened against the US dollar, removing to a certain extent, hopes of a raise, which would be welcome news to the UK's savers, but not to borrowers.

The Governor Mark Caney said yesterday that the recent weakening of sterling would be taken into consideration at next week’s interest rate decision.

The banking group, still 9% owned by the taxpayer, Lloyds (LON:LLOY) was still in focus after results, with shares nudging up a tad 0.7% to be precise to stand at 55.74p, and the question of whether private retail share holders should be included in a sale very much a live one.

READ - Unrest grows over plans to bar retail investors from Lloyds share sale

Whitbread plc  (LON:WTB) shares were among top Footsie losers - shedding 2.95% to 3,590p as various brokers looked at the stock and cut target prices after yesterday's interims. Read more here.

FTSE 100 weighed down by miners, Lloyds - update at 11.20ap

Britain's blue chip index is trailing around 6 points at 11.25am, with big cap miners the big laggards.

Copper giant Antofagasta (LON:ANTO) gets the biggest loser prize as it laid bare the problems in the mininbg sector, while conversely British Airways owner IAG (LON:IAG) was flying higher, up 1.49%. It comes after yesterday’s landmark decision from the UK government to support a third runway to expand Heathrow airport. Lloyds shares also dropped 1.37% to 54.59p after it released latest results.

READ - Lloyds Banking disappoints, but at least the divi looks safe

In small caps, some junior miners were notable gainers with multi- commodity focused Strategic Minerals plc (LON:AML) adding 24% to 0.63p.

Armadale Capital PLC (LON:ACP) also shot up 20% to 3.75p a pop as it  told investors it had now completed its 2016 drill programme at the Mahenge Liandu graphite project in Tanzania with 18 holes of 21 hitting coarse-grained graphite along a 2km strike.

Genel Energy one of Wednesday’s fallers - 9:45

Kurdistan based oil firm Genel Energy PLC (LON:GENL), down 11%, was a notable mover in Wednesday’s early deal after warning that production would be at the low end of guidance.

Wednesday’s other notable fallers included Shanks Group Plc (LON:SKS) and Antofagasta Plc (LON:ANTO).

Shanks was former adjusting for the admission of new capital on the London exchange, but for Anto the struggle was ‘real’ as it gave an update on production and the copper market.

Equatorial Palm Oil Plc (LON:PAL) was a standout riser, gaining 50% to change hands at 2.88p. Earlier this week it revealed that land development would start up again for its plantations in Liberia.

 

FTSE 100 dragged lower by oilers, miners and Lloyds - 8:30

You could be forgiven by for becoming a little bored following the FTSE 100, which has, for the past fortnight, bobbed below and above the 7,000 level.

Wednesday was a down day for the index of blue-chip shares, which was off 37 points at 6,980.58 in early trade.

The latest production report from copper miner Antofagasta PLC (LON:ANTO) laid bare the problems with sector and propelled the London-listed Chile-focused operator to the top of the loser’s list. It was off almost 7%.

Lloyds Banking (LON:LLOY) wasn’t far behind after its latest results failed to inspire. The oilers were also in the debit column as the crude price weakened overnight.

A little ray of sunshine was provided by Burberry (LON:BRBY) , which looked a little oversold in the wake of its trading update last week. The shares rose 1.7%.

Oil dips below US$50 a barrel - Preview

Britain's blue chips are called to start lower Wednesday after weaker trading in Asia overnight and as oil prices dipped below the US$50 a barrel mark.

FTSE 100 closed yesterday up 0.5%, or around 31 points at 7,017 but is tipped by financial spreadbetters at IG index to begin around 17 points lower.

The index eased in the last hour of trading as  US stocks slipped under the sheer weight of Q3 corporate earnings, weakening US consumer confidence data and Goldman Sachs's sobering forecasts for S&P 500 earnings.

The latter closed down 0.38% or eight points at 2,143, while the Dow Jones lost 0.3%, or 53 to 18, 169.

US crude is down 1.38% at the time of writing to US$49.27 a barrel as the market suffered from a growth in US stockpiles and continued doubts as to whether OPEC will actually agree to stem production rates.

That, along with US cues, caused Asian stocks to ease and China's Shanghai Composite Index is down 0.42% to 3,118 but the Nikkei 225 in Japan is up a tad  - 0.04% to 17,372.

In corporate UK today there are some big names reporting including Lloyds Banking Group (LON:LLOY), drugs giant GlaxoSmithKline plc (LON:GSK),Antofagasta PLC (LON:ANTO), and engineer Cobham PLC (LON:COB).

The broker The Share Centre expects that in focus will be commentary on a potential 'hard' Brexit following the EU referendum.

This would see the UK leaves the single market and therefore may lose passporting rights. The government appears to be learning towards this as a preferred option.

"This will be the first quarter of full post Brexit results for them and management comments will be scrutinised very closely," said the broker.

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