UK's FTSE 100 falls as weak China data hurts miners
Reuters
Published Aug 01, 2023 08:20
Updated Aug 01, 2023 17:20
By Shashwat Chauhan and Rupali Chaudhary
(Reuters) -The UK's FTSE 100 fell on Tuesday as mining firms dipped after China's manufacturing activity contracted in July, outweighing upbeat earnings from firms including HSBC (LON:HSBA) and Weir Group (LON:WEIR).
The blue-chip FTSE 100 and the more domestically focused FTSE 250 midcap index both closed down 0.4%.
Industrial metal miners fell 1.1% as prices of most base metals slipped on worries about demand from top consumer China, after the country's manufacturing activity swung to contraction in July. [MET/L]
Hurting energy stocks such as BP (LON:BP) and Shell (LON:RDSa), oil prices edged lower on signs of profit-taking after rallying in July.
"A lot of (gains) that we saw in the FTSE over the past few days came from commodity-based stocks," says Steve Sosnick, chief strategist at Interactive Brokers.
"They're seeing some profit taking today because of some disappointing Chinese manufacturing news."
Shares of China-exposed insurer Prudential (LON:PRU) Plc fell 2.1%.
Factory activity in other parts of the world also remained in a slump in July, private surveys showed.
Limiting losses, HSBC rose 1.3% and touched a four-year high earlier in the session, after Europe's largest bank raised its key performance target.
Weir Group jumped 2.2% to the top of the FTSE 100 after the engineering firm raised full-year revenue and profit guidance.
The beverages index added 1.7% as Diageo (LON:DGE) rose 0.3% after the world's largest spirits maker beat full-year sales forecasts.
Markets now await the Bank of England's decision on monetary policy on Thursday, with consensus tilted towards a 25 basis point hike by the central bank.
British stocks have started August on a softer note after logging gains in July on data showing easing in domestic inflation.
Among other stocks, British hedge fund manager Man Group fell 5.5% after a disappointing performance across several funds.
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Written By: Reuters
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