Miners drag FTSE 100 from 16-month highs

0
46
imageStock Markets14 hours ago (Jun 17, 2021 17:07)

© Reuters. FILE PHOTO: A man walks through the lobby of the London Stock Exchange in London, Britain August 25, 2015. REUTERS/Suzanne Plunkett/File photo

By Devik Jain and Amal S

(Reuters) – Miners knocked London’s FTSE 100 index off 16-month highs on Thursday as a hawkish turn by the U.S. Federal Reserve hit commodity prices, although Britain’s plans to ease travel restrictions allowed airline shares to buck the trend.

The blue-chip index ended 0.4% down, snapping its five-day winning streak and marked its biggest percentage fall in two weeks.

Base and precious metal miners slid 3.0% and 3.5% respectively, as commodity prices slipped after the Fed signalled it could raise rates earlier than expected. [O/R][MET/L]

“The U.S. Federal Reserve has proved a bit of an unreliable partner to the markets, promising not to raise rates too far or too fast and then suddenly announcing an acceleration in its plans on this front,” said Danni Hewson, analyst at AJ Bell in a note.

“It is a reminder that investors will eventually have to confront the reality that the current ultra-loose monetary policy won’t last forever.”

The domestically focused mid-cap FTSE 250 index declined 0.4%. Dr. Martens slipped 11.5% to the bottom of the index even after the classic British boot brand reported a 22% rise in its annual core earnings.

Oil majors BP (LON:BP) and Royal Dutch Shell (LON:RDSa) fell 1.5% and 0.7% respectively, tracking weaker crude. [O/R]

Giving hope to travel companies, Britain said it was considering allowing people who are double vaccinated against COVID-19 to enjoy a foreign holiday without intrusive red tape.

Airlines, including Wizz Air, British Airways-owner IAG (LON:ICAG), EasyJet Plc and Ryanair Holdings jumped between 0.8% and 3%.

While travel-related stocks gained 0.6% as companies, including TUI (LON:TUIT) AG, InterContinental Hotels Group PLC and Jet2, rose between 1.1% and 4.4%.

Premier Inn-owner Whitbread (LON:WTB) gained 1.9% after saying hotel bookings in its tourist locations picked up in the run-up to the summer travel season.

Trainline climbed 5.1% after the rail operator’s group net ticket sales hit the highest since the start of the pandemic.

Miners drag FTSE 100 from 16-month highs

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here