LONDON, July 12 — UK’s top share index dipped today, as miners came under pressure for a third day after metal prices slumped on strict Covid-19 lockdowns in top consumer China, while bearish brokerage actions weighed on real estate stocks.
The industrial metals and mining index dropped 1.5 per cent as copper prices slid on the back of a strong US dollar, China’s lockdowns and higher benchmark interest rates globally.
The blue-chip FTSE 100 was down 0.2 per cent and the domestically oriented FTSE 250 index dropped 0.7 per cent.
“The FTSE 100 dipped at the open after weak trading in the US and Asia as investors continue to weigh the risks associated with war in Ukraine, stubborn inflationary pressures and Chinese lockdowns,” Danni Hewson, financial analyst AJ Bell said in a note.
“This cocktail of worries is preventing the markets from making any tangible progress.” An industry survey showed British shoppers cut back on spending for the third month in a row and sales volumes fell by the most since they were hit hard by the pandemic as surging inflation squeezed the economy.
Meanwhile, Britain’s new prime minister will be announced on September 5, with the first votes to begin eliminating candidates in a crowded and increasingly unpredictable and divisive contest to replace Boris Johnson this week.
Real estate firms Hammerson, British Land and Land Securities fell between 3.7 per cent and 4 per cent after Royal Bank of Canada downgraded their shares, saying higher interest rates, deterioration in credit spreads and recessionary trends put the sector in “uncharted territory”.
Among mid-caps, shares of Plus500 climbed 2 per cent after the online trading platform forecast its annual revenue and profit ahead of market expectations, benefiting from a surge in market volatility. — Reuters
