Mining stocks lead FTSE 100 down
written by Bella PalmerThe blue-chip FTSE 100 index was down 0.1% while the mid-cap index FTSE 250 dropped 0.2%
The UK's benchmark FTSE 100 edged lower on Thursday, with losses in mining shares offsetting another strong day for energy companies, while Britain's biggest supermarket group Tesco jumped after raising its annual profit forecast.
The blue-chip FTSE 100 index was 0.1% lower while the mid-cap index FTSE 250 dropped 0.2%.
Heavyweight mining shares lost ground, with indexes tracking industrial miners and precious metal miners down 1.2% and 0.3%, respectively.
Prices of industrial metals such as copper slid on worries about ongoing conflict in the Middle East, a stronger U.S. dollar and some uncertainty about the demand impact of stimulus measures in China.
Gold also lost ground as the dollar firmed as markets reassesed the probability of another 50 bp Fed rate cut.
Oil and gas shares climbed 1.4%, extending gains for a fifth successive session, as crude prices gained on expectations that a widening Middle East conflict could disrupt supply.
Meanwhile, BoE Governor Andrew Bailey said there was a chance the central bank could move more quickly to cut interest rates if there is further good news on inflation.
Rate sensitive homebuilding stocks added 1.3% after his comments.
The S&P Global UK Services PMI tumbled to 52.4 in September, from 53.7 in August, with prices charged rising at the slowest pace in nearly four years. Inflation in the services sector is closely watched by the BoE.
Markets have all but priced in a 25 bp cut from the Bank of England in November.
Meanwhile, Tesco shares jumped 2.5% after the supermarket group raised its profit guidance for the year and reported a 10% rise in first-half core profit.
Insurer Phoenix Group was the biggest FTSE 100 decliner, dropping 5.7%.
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