Latest News

Banks, miners knock FTSE 100, hot jobs data fuels rate hike bets


© Reuters. FILE PHOTO: British five pound banknotes are seen in this picture illustration taken November 14, 2017. REUTERS/Benoit Tessier/Illustration

(Reuters) -UK’s FTSE 100 fell on Tuesday, dragged down by mining and oil stocks as commodity prices retreated on concerns about resurgent COVID-19 cases in China, while strong jobs data supported the case for a Bank of England interest rate hike later this week.

The commodity-heavy FTSE 100 fell 1.4%, while the mid-cap index dropped 1.6%.

UK’s oil & gas index slid 2.6% as crude prices tumbled to two-week lows, while industrial miners dropped 4.0%. Most metal prices fell on concerns over the fallout from surging COVID-19 cases in top metals’ consumer China. [O/R] [MET/L]

Meanwhile, official figures showed Britain’s unemployment rate dropped below its pre-pandemic rate in the three months to January while pay rose faster than expected.

“The modest further acceleration in nominal wage growth seen in today’s report coupled with lead indicators showing further tightening ahead are likely to provide further justification for the MPC to continue to ‘front load’ policy tightening,” RBC analysts said in a note.

“We look for a further 25bp rate rise at this week’s meeting,” they added.

Among individual stocks, cigarette maker Imperial Brands (LON:IMB) slipped 0.4% after saying its exit from Russia would have a small impact on annual profit.

Events group Informa Plc (LON:INF) inched up 0.5% after reporting higher annual profit, as more trade shows and conferences resumed from the pandemic hiatus and its digital business expanded.

TP ICAP (LON:NXGN), the world’s biggest inter-dealer broker, fell 9.5% after reporting an 81% profit slump last year.

Mining, oil stocks knock FTSE 100 lower on China COVID concerns

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What Democrats don’t get about gas prices

Previous article

European shares dip on worries over China COVID surge

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News