Miners weigh on London’s FTSE 100; travel stocks jump

By on September 17, 2021 0

The offices of the London Stock Exchange Group can be seen in the City of London, Great Britain on December 29, 2017. REUTERS / Toby Melville / File Photo

  • Miners down on iron ore weakness
  • Airlines take advantage of prospect of relaxing travel rules
  • FTSE 100 down 1.2%, FTSE 250 down 0.2%

September 17 (Reuters) – London’s FTSE 100 ended lower on Friday, penalized by a collapse in mining stocks, while UK retail sales fell unexpectedly in August, adding to concerns about the economic recovery.

After rising 0.9%, the blue-chip FTSE 100 Index (.FTSE) ended down 1.2% and marked its third consecutive week in the red. The FTSE 250 index (.FTMC) of midcaps focused on the domestic market was down 0.2%.

The main declines were in base metal miners (.FTNMX551020) including Anglo American (AAL.L), Rio Tinto (RIO.L), BHP Group (BHPB.L) and Glencore (GLEN.L) in decline between 2.6% and 8.2%, depending on the weakness of the iron ore. METL /

“I think the market is starting to understand what potential contagion is involved in how something like the fall of Evergrande would reverberate around the world in terms of demand for things like iron ore,” Keith Temperton said. , salesperson at Forte Securities. .

UK retail sales fell 0.9% in August compared to a Reuters poll for a 0.5% increase, after data at the start of the week showed a strong recovery in the labor market and soaring inflation. Read more

Investors will now focus on the results of the Bank of England (BoE) policy meeting next week. Read more

“Next week’s policy decision should reaffirm that some tightening will be needed over the next few years to control inflation (and the economy). But we don’t expect the BoE to conclude that there is still sufficient arguments for rate hikes, “said Deutsche Bank economist Sanjay Raja.

The FTSE 100 and FTSE 250 indexes fell around 1.2% and 0.6% this week as a better-than-expected recovery in the labor market and mounting price pressures fueled fears of an anticipated reduction stimulus measures from the Bank of England.

Airlines Wizz Air (WIZZ.L), Easyjet (EZJ.L) and British Airways owner IAG (ICAG.L) and vacation company TUI AG rose 2.2% to 5.7%, so that Britain was about to consider relaxing its COVID-19 rules for international travel. Read more

Wickes Group (WIX.L) jumped 3.3% to the top of the FTSE 250 after Deutsche upgraded the DIY retailer to “buy” from “hold”. Read more

Report by Devik Jain and Amal S in Bangalore; Editing by Uttaresh.V, Shounak Dasgupta and David Gregorio

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