FTSE 100 Poised for First Weekly Decline in Five Weeks as Mining Stocks Fall
Market Performance and Key Drivers
Aug 14 (Reuters) - London's FTSE 100 was on track for its first weekly setback in five on Friday, as miners retreated alongside a dip in copper prices, though software and data companies rebounded after the report of a large deal in the sector.
The blue-chip FTSE 100 dipped 0.1% to 10,765.30 points by 1009 GMT, on track for its first weekly decline since early July. The midcap FTSE 250 edged up 0.1% to 24,860.50 points, set to end the week largely flat.
Mining Sector Weakness
Antofagasta and Copper Prices
• Shares of miner Antofagasta dropped almost 5%, down sharply for the second consecutive day after its production outlook disappointed on Thursday and copper prices fell after a recent rally. [MET/L]
FTSE 350 Industrial Metal and Mining Index
• The FTSE 350 industrial metal and mining index was set for a 4.7% weekly drop, in what could be the weakest weekly performance since mid-March.
Software and Data Sector Gains
Private Equity Activity
• Among gainers, shares of Sage Group, Experian and RELX climbed in 3.5% to 5.7% after Reuters reported private equity firm Silver Lake was in talks to acquire U.S. software firm Workday, lifting the sector.
Global Market Sentiment
Impact of U.S. Inflation Data
• Global stocks traded just below record highs as benign U.S. inflation data this week tempered expectations of Federal Reserve interest rate hikes this year.
Geopolitical Tensions and Oil Prices
• Still, a lack of progress towards a lasting peace deal between the United States and Iran has weighed on sentiment and kept crude prices on track for weekly gains. [O/R]
• The United States said on Thursday it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered, global oil supply is dropping and regional tensions are rising.
UK Economic Outlook
Bank of England Policy
Chief Economist's Comments
• Bank of England Chief Economist Huw Pill told the Wall Street Journal that stronger-than-expected British economic growth figures reinforced the case for higher borrowing costs to bring inflation back to target, after data showed a surprise 0.3% rise in the UK's gross domestic product in June.
Interest Rate Expectations
• Traders expect at least one 25-basis-point rate hike from the BoE by the end of this year, according to LSEG-compiled data.
Company-Specific Movers
Entain and GB Group
• Ladbrokes owner Entain rose 3.6% as it beat first-half profit expectations, while identity technology company GB Group sank 27%, its steepest fall in over nine years, after cutting its annual revenue growth forecast.
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Joyjeet Das)
