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Industrial mining stocks lead FTSE 100 lower

written by Bella Palmer

The blue-chip FTSE 100 dropped 0.4 per cent, while the more domestically focussed FTSE 250 midcap index was 0.1 per cent lower

UK's FTSE 100 ended lower on Monday as losses in heavyweight industrial mining stocks weighed on the commodity-focused index, while luxury retailer Burberry slid on a price target cut.

The blue-chip FTSE 100 dropped 0.4 per cent, while the more domestically focussed FTSE 250 midcap index was 0.1 per cent lower.

Industrial metal miners shed 0.5 per cent after a downturn in copper prices as concerns about demand resurfaced after weak data from China.

The personal goods sector shed 1.1 per cent as Burberry shares slipped 1.6 per cent after Deutsche Bank reduced its price target on the luxury retailer.

Precious metal miners led sectoral gains, gaining 2.2 per cent as gold prices reached a more than six-month high, helped by a weaker dollar and expectations of an end to U.S. interest rate hikes.

Rightmove shares added 4.8 per cent, leading gains in the FTSE 100, after the UK's biggest property portal lifted its forecast for annual average revenue per advertiser and added broker advice to its mortgage business.

Clients are spending more on advertising on average, driven by new home developers doing more to try and shift their properties, said Russ Mould, investment director at AJ Bell, in a note.

The broader real estate index was 1.2 per cent higher.

Metro Bank surged 4.9 per cent on a report that Barclays is in exclusive talks to buy the lender's £3 billion residential mortgages portfolio.

Metro Bank investors also backed a £925 million rescue package for the bank that hands majority control to its largest shareholder, Colombian billionaire Jaime Gilinski.

The exporter-heavy FTSE 100 is on track for monthly gains as sentiment got a lift from hopes of a softer monetary policy globally, with expectations growing that perhaps interest rates have peaked.


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