Get 40% Off
💰 Warren Buffett reveals a $6.72 billion stake in ChubbCopy Portfolios

Miners, oil majors pull FTSE lower by midday

Published 07/03/2009, 06:40 AM
Updated 07/03/2009, 06:48 AM
UK100
-
BATS
-
BARC
-
BP
-
NWG
-
XTA
-
AZN
-
IMB
-
REL
-
WPP
-
BSBAy
-
BALF
-
RIO
-
SHP
-
AAL
-
GSK
-
BG
-
BHPB
-
CNE
-
ANTO
-

* Miners fall as metal prices weaken

* Oil majors slip on crude below $67

* Reed Elsevier up on media sector upgrade

* U.S. markets closed ahead of Independence Day

By Farah Master

LONDON, July 3 (Reuters) - Britain's leading share index was 0.2 percent lower by midday on Friday after poor U.S. jobs data in the previous session mired market sentiment and lower commodity prices weighed on miners and oil majors.

By 1031 GMT the FTSE 100 index was down 6.13 points at 4,228.14 in subdued trading with U.S. markets closed on Friday for the Independence Day holiday.

"It's really, really quiet. The people we probably would have seen in this market looking to buy from yesterday's lows probably would have been here if it had not been for those non-farms," said Joshua Raymond, market strategist at City Index.

The British blue-chip index ended 106.44 points lower on Thursday at 4,234.27, sliding with Wall Street after U.S. data showed non-farm payrolls fell more than expected in June.

"I think the non-farms have scared away anyone who was looking to trade today. Historically when the U.S. is closed for independence day, Europe tends to be really muted. That is pretty much what we are seeing already and I don't think that is going to change this afternoon," Raymond said

Miners were the biggest drag on the index, as concern over demand for metals on economic recovery uncertainties pushed prices lower.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Antofagasta, Anglo American, BHP Billiton, Xstrata, Vedanta Resources, and Rio Tinto lost 0.9-2.8 percent.

Underwriters to Rio Tinto's rights issue sold the Australian "rump" at A$48.50 each, a 6.3 percent discount to Rio's last traded price, Rio said in a statement on Friday.

Oil majors fell as crude stayed below $67 a barrel after a nearly 4 percent fall on Thursday with the high jobless numbers across the United States and Europe reviving concerns about the global economic outlook and its impact on energy demand.

BP, Royal Dutch Shell, BG Group, Cairn Energy, and Tullow Oil lost 0.3 to 1.4 percent.

Elsewhere, Balfour Beatty was down 2.2 percent after the infrastructure company's in-line trading update failed to inspire.

MEDIA UPGRADE

Media stocks were higher, led by Reed Elsevier after Credit Suisse raised its rating on the European media sector to "overweight" from "underweight," and said the sector has significantly underperformed the market and valuations are now at record lows.

BSkyB was 0.8 percent higher, while WPP was up 1.3 percent.

Banks also gained, rebounding after falls on Thursday.

Royal Bank of Scotland added 1.1 percent, with Barclays, HSBC and Lloyds Banking Group rising 0.9-1.2 percent

Defensive issues also found support as investors' risk appetite faded following the U.S. jobs disappointment, with tobacco and drug issues moving higher.

GlaxoSmithKline, AstraZeneca, and Shire rose 0.2-0.7 percent, while British American Tobacco and Imperial Tobacco added 0.8 and 0.3 percent, respectively.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

And British Airways took on 1.3 percent ahead of the airline's June passenger traffic numbers, due at 1315 GMT.

There was little market reaction to data showing a slowing in the recovery in the British service sector in June, with the CIPS/Markit UK services PMI activity index reading of 51.6 below May's 51.7 reading and the forecast of 52.0. (Reporting by Farah Master; Editing by Dan Lalor)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.