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Mining and supermarket stocks push FTSE 100 Index lower

Published 19/07/2016

Markets were taking stock after a recent post-Brexit vote bounceback saw the FTSE 100 close within reach of 6700 on Monday
Markets were taking stock after a recent post-Brexit vote bounceback saw the FTSE 100 close within reach of 6700 on Monday

London's FTSE 100 Index slipped into the red as global stock markets paused after a rally that saw US stocks notch up another all-time high on Wall Street.

The UK's top flight fell 25.2 points to 6670.3, held back by share losses among mining stocks and supermarkets, while European indices were also lower, with the Dax in Germany down 1.1% and France's Cac 40 off 0.9%.

Markets were taking stock after a recent post-Brexit vote bounceback saw the FTSE 100 close within reach of 6700 on Monday, while the Standard & Poor's 500 Index in America set another record high overnight thanks to robust bank earnings.

Falls in London came as official figures showed inflation rose to a higher-than-expected 0.5% last month after fuel prices increased and the Euro 2016 football tournament drove up the cost of air fares.

The Office for National Statistics (ONS) said Consumer Price Index (CPI) inflation in June was up from 0.3% in May and matched the 15-month high recorded in March.

Among stocks in London, miners Glencore and Rio Tinto were leading the declines, off 7.1p to 179.3p and 88.5p to 2374p respectively.

Tesco was 2% or 3.2p lower at 168.9p after the National Farmers Union (NFU) lodged a complaint over its "fictional" farm brands.

The NFU has complained to National Trading Standards asking it to outline guidelines for country of origin labelling, claiming that "mixing imported product with British product under the same fictional farm name can be misleading to many of their customers".

Royal Mail edged 0.8p higher at 502.8p after a trading update revealed its European parcels business GLS continued to offset further declines in its UK letters arm, with overall group revenues up 1% in the quarter to June 26.

The group also revealed it was keeping a close eye on Britain's economic growth amid fears of a sharp slowdown following the Brexit vote.

Royal Mail said changes in gross domestic product were key "drivers" for its letter and parcel business and confirmed it was "monitoring the situation".

Housebuilders continued to rise in the top tier after Bank of England policymaker Martin Weale questioned on Monday whether interest rates needed to be cut next month from 0.5%, where they have remained since March 2009.

Charles Church owner Persimmon was up another 15p at 1620p, while Taylor Wimpey added another 0.7p to 148.4p.

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