London stocks lag as miners slip; AstraZeneca weighs
Reuters
Published Jun 19, 2023 09:45
Updated Jun 19, 2023 17:11
By Ankika Biswas and Shashwat Chauhan
(Reuters) -The UK's resources-heavy benchmark index slipped on Monday, dragged by mining stocks which tracked metal prices lower, while shares of pharmaceutical major AstraZeneca (NASDAQ:AZN) slipped on a report of the drugmaker's plans to spin off its China business.
The FTSE 100 slipped 0.7% as miners of both industrial metals and precious metals slipped 1.8% and 1.7%, respectively.
A firmer dollar weighed on copper and gold prices, while a lack of detail on economic stimulus in top consumer China further dented sentiment. [GOL/] [MET/L]
A Reuters survey showed that China is widely expected to cut key lending benchmarks on Tuesday as authorities seek to shore up a slowing economic recovery.
AstraZeneca fell 1.2%, dragging the healthcare sector down 1.1% on the report saying the company plans to spin off its China business and is considering a separate unit listing in Hong Kong.
The FTSE 250 mid-cap index also fell, by 0.9%.
Investor focus will remain on domestic inflation data due Wednesday to assess the state of economy, leading up to the Bank of England's decision on monetary policy on Thursday, with traders almost fully pricing in another 25-basis-point hike.
"For the BoE, the May inflation print will do little to shift the Monetary Policy Committee's thinking around a June rate hike as we believe a quarter-point hike is very likely a done deal," said Sanjay Raja, chief UK economist at Deutsche Bank (ETR:DBKGn) Research.
"At most, an upside surprise could trigger more hawkish forward guidance, with the MPC potentially doubling down on its efforts to tackle excess inflation," Raja said.
British two-year government bond yields rose to 5% for the first time since July 2008. [GB/]
Bucking the trend, Next advanced 4.7% after the fashion retailer raised its sales and profit guidance for the year.
The broader retailers index rose 0.9%.
Meanwhile, a survey showed a decline in asking prices for British homes in June for the first time in six years, indicating an earlier-than-usual summer slowdown amid mortgage market turmoil.
The UK's homebuilding sector dropped 1.1%.
Get The App
Trading was thin as U.S. markets were closed for the Juneteenth holiday on Monday.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.