LONDON: The UK’s FTSE 100 fell on Tuesday as mining firms dipped after China’s manufacturing activity contracted in July, outweighing upbeat earnings from firms including HSBC and Weir Group.
The blue-chip FTSE 100 and the more domestically focused FTSE 250 midcap index both closed down 0.4%.
Industrial metal miners fell 1.1% as prices of most base metals slipped on worries about demand from top consumer China, after the country’s manufacturing activity swung to contraction in July. Hurting energy stocks such as BP and Shell, oil prices edged lower on signs of profit-taking after rallying in July.
“A lot of (gains) that we saw in the FTSE over the past few days came from commodity-based stocks,” says Steve Sosnick, chief strategist at Interactive Brokers. “They’re seeing some profit taking today because of some disappointing Chinese manufacturing news.” Shares of China-exposed insurer Prudential Plc fell 2.1%. Factory activity in other parts of the world also remained in a slump in July, private surveys showed.
Limiting losses, HSBC rose 1.3% and touched a four-year high earlier in the session, after Europe’s largest bank raised its key performance target.
Weir Group jumped 2.2% to the top of the FTSE 100 after the engineering firm raised full-year revenue and profit guidance. The beverages index added 1.7% as Diageo rose 0.3% after the world’s largest spirits maker beat full-year sales forecasts.
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