Antofagasta Cuts Outlook, Sending FTSE 100 to Lowest Since Late July
Market Reaction and Economic Overview
FTSE 100 and FTSE 250 Performance
Aug 13 (Reuters) - London's FTSE 100 fell to a more than two-week low on Thursday after Antofagasta's downbeat copper production forecast sparked losses in the mining sector and offset any relief from stronger-than-expected economic growth in June.
The blue-chip FTSE 100 index fell 0.2% to 10,806.89 points by 1008 GMT — dropping for a fourth consecutive day and touching its lowest since July 28. The mid-cap FTSE 250 climbed 0.2% to 24,870.08 points.
UK Economic Growth
Unexpected GDP Rise
• Britain's economy unexpectedly grew in June as companies enjoyed a respite from the energy price surge caused by the Iran war, the start of the men's soccer World Cup and hot weather, official data showed.
GDP Figures and Market Response
• Gross domestic product rose by 0.3% in June, putting Britain on course for the strongest growth among the Group of Seven rich economies in the first half of 2026, after being flat in May. The pound, though, was largely unchanged against the dollar as the data did little to change near-term interest rate expectations.
Analyst Commentary
• "This is not a boom though, and quarterly growth has slowed from 0.6%, but Britain is proving significantly harder to knock off course than many feared," said Sam North, market analyst for eToro.
Mining Sector Impact
Antofagasta and Other Miners
• Antofagasta shares fell 5% after the company cut its 2026 copper output due to a shutdown at its Los Pelambres mine in July. Shares of other miners Rio Tinto and Anglo American dropped 4.5% and 3.2%, respectively.
Broader Mining Indexes
• The FTSE 350 indexes of industrial metal miners and precious metal miners fell more than 3% each as metal prices lost steam against a firmer dollar. [GOL/] [MET/L]
Global Economic Factors
US Inflation and Federal Reserve Outlook
• A tame U.S. inflation reading on Wednesday dented expectations of an interest rate hike from the Federal Reserve next month. Yet, a lack of progress to permanently end the Middle East conflict kept oil prices supported and raised concerns about energy-driven inflationary pressures. [O/R]
Mid-Cap Movers
Costain Results
• Among mid-cap stocks, Costain gained 4.6% after the infrastructure solutions firm issued upbeat half-yearly results.
Savills Profit Surge
• British property firm Savills surged 8.7% as it posted a 47% rise in half-year underlying profit, strengthened by an improvement in its North American and transactional businesses.
Reporting Credits
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
