Summary: Miners fall on lower metal prices Rolls-Royce shines on Citigroup PT raise FTSE 100 down 0.2%, FTSE 250 down 0.1% A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London, Britain, October 1, 2008. REUTERS/Toby Melville/File Photo/
The UK’s FTSE 100 slipped on Monday, with mining stocks among the top decliners, tracking a fall metal prices, while investors await a slew of central bank meetings and economic data due this week.
The blue-chip FTSE 100 (.FTSE) was down 0.2% as of 0925 GMT, while the more domestically-focussed FTSE 250 mid-cap index (.FTMC) lost 0.1%.
Industrial metal miners (.FTNMX551020) were amongst the top losers, falling 1% as prices of most base metals declined on a firmer dollar, while iron ore prices lost ground on disappointing China consumer price data.
Lower gold prices also pushed precious metal miners (.FTNMX551030) down 2.3%.
All eyes are now on major central banks, with the Bank of England (BoE), U.S. Federal Reserve, and European Central Bank scheduled to announce their monetary policy decisions during the week.
“Every other nation talks about the importance of bringing inflation down, but (in the UK) we have a cost of living crisis, which we blame on all sorts of external factors,” said Frédérique Carrier, head of investment strategy in the British Isles at RBC Wealth Management.
“While (in our view) the BoE is done now, the prospect of rate cuts is a lot more remote (in Britain) than it might be elsewhere.”
All three central banks are expected to hold rates at current levels.
On the data front, UK employment figures, inflation prints across the euro zone, and November consumer price data from the United States will be on the watchlist.
The FTSE 100 has vastly underperformed against its global peers so far this year, with the index only up around 1% compared to a nearly 20% jump in the S&P 500 (.SPX) and a more than 10% rise in the pan-European STOXX 600 (.STOXX).
Among individual stocks, Rolls-Royce (RR.L) gained 2.2% after Citigroup raised its price target on the engineering company’s stock.
British American Tobacco (BATS.L) fell 1.4% as Jefferies reduced its price target on the stock.
Reporting by Shashwat Chauhan in Bengaluru; Editing by Varun H K and Sonia Cheema
