LONDON: London’s FTSE 100 dipped from record highs on Thursday as Rio Tinto’s shares fell after the global miner’s annual earnings missed expectations, while simmering US-Iran tensions kept investors cautious.
The blue-chip index fell 0.5 percent after closing at a record high for two straight sessions. The domestically focused mid-cap FTSE 250 was down 0.4 percent. Rio Tinto fell 3.6 percent after the miner reported flat annual earnings as lower prices at its mainstay iron ore business were offset by a strong performance in its copper division.
Other London-listed miners also fell after copper prices were hit by a firmer dollar, rising inventories and reduced demand because of the Lunar New Year holiday in China, the world’s biggest metals consumer. “A stronger US dollar - at one-month highs amid flight-to-safety flows - added pressure on precious and base metals, weighing on UK mining stocks, putting a dent in the FTSE 100’s stellar performance,” said Axel Rudolph, senior financial analyst at IG. Investors around the globe have been unnerved by US-Iran tensions over Tehran’s nuclear program, with oil prices rising by more than 2 percent.
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