UK's FTSE 100 slips as miners, oil stocks fall
Market Performance and Sector Highlights
July 15 (Reuters) - London's FTSE 100 slipped on Wednesday, with commodity-linked stocks leading losses amid weakness in metals and oil prices, while escalating tensions in the Middle East also dented risk appetite.
The blue-chip FTSE 100 index fell 0.1% to 10,515.9 points, snapping a three-day winning streak. The midcap FTSE 250 advanced 0.2%, its fifth straight day of gains.
Commodity-Linked Stocks Under Pressure
Precious and Industrial Metals
• Precious metals miners declined 2.7% as gold and silver prices came under pressure.
• Industrial metal miners dropped 2.1%; Anglo American lost 3.4% and heavyweight Glencore shed 2.4%.
Energy Sector
• Energy shares dipped 0.9%, tracking crude oil prices, which fell around 1%.
Geopolitical Tensions Impact Markets
Middle East Developments
• Risk sentiment remained shaky as the U.S. conducted a new wave of strikes against Iran's coastal defence systems and missile sites after reimposing a naval blockade of Iranian ports.
• Iran also threatened to shut off more regional energy exports.
Currency and Economic Policy News
British Pound Movement
• Meanwhile, the British pound jumped 0.8% on expectations that Andy Burnham, who is likely to be named new Labour party leader on Friday, will pick a fiscally conservative finance minister.
OECD Recommendations
• The OECD said Britain must maintain fiscal discipline, tackle rising pension costs and address high energy prices to boost economic growth,
Sector-Specific Movers
Homebuilders
• The broader homebuilder sector jumped 3.9%, with Barratt Redrow gaining 4.3% after the builder said it would return £400 million ($536 million) to shareholders through share buybacks instead of dividends.
Personal Goods
• The personal goods index rose 2.8%, buoyed by a 3.8% rise in Watches of Switzerland Group after several brokerages lifted their target price on the stock.
Retail
B&M Performance
• Shares of B&M fell 5.4% after the discount retailer reported a 2.3% decline in first-quarter like-for-like sales in its core UK market.
(Reporting by Tharuniyaa Lakshmi and Shashwat Chauhan in Bengaluru; Editing by Mrigank Dhaniwala and Diti Pujara)
