Mining stocks weigh on FTSE
Britain’s FTSE 100 index dips as the mining sector takes a knock on Thursday.
|||London - Britain's FTSE 100 index fell on Thursday, led lower by the influential mining sector as market sentiment was dampened by weak economic data from China.
China's manufacturers had cut prices at the fastest rate in six years, according to its August producer price index figures, stoking deflation fears and the expectation of further stimulus measures.
The data hit the mining sector, with BHP Billiton falling 4.9 percent and Glencore down 3.5 percent.
The FTSE 100 was down 0.7 percent at 6,186.41 points at 09h22 GMT, set to snap a three-day rally.
Morrisons, Britain's fourth-biggest supermarket group, fell 4 percent, giving up its previous day's gains, after it reported a 35 percent slump in first-half profit, its lowest level in nine years.
The UK grocer, which is engaged in a price war with rivals to stem the loss of shoppers to discounters Aldi and Lidl, said its turnaround plan will take time.
On Wednesday it announced plans to sell its convenience stores to focus on improving its core larger stores.
“Until we see the first signs of a retail proposition, that has consumer appeal and that has been well costed, we do not anticipate margin improvements at the true underlying level,” analysts at Bernstein said in a note.
Fellow retailers Tesco and Sainsbury were also lower, falling 2.1 percent and 1.6 percent respectively.
Positive corporate results gave a boost to Dixons Carphone. The European electrical goods and mobile phone retailer was up 2.1 percent after posting a consensus-beating 8 percent rise in first quarter underlying sales, led by a strong showing in its home market Britain.
Next, Britain's second-largest clothing retailer by sales value, was up 1.8 percent after it reported a 7.1 percent rise in first-half profit on Thursday after selling more products than expected at full price.
“I think the wider theme is that consumer confidence is pretty high... (and) those that have the best online presence, like Next, are the ones doing the best,” Jasper Lawler, market analyst at CMC Markets, said.
Satellite communications company Inmarsat rose 1.5 percent after announcing its participation with Rolls-Royce on an autonomous ship project.
REUTERS