The FTSE 100 opened 65 points lower at 10,464 on Wednesday, driven by escalating tensions between the United States and Iran that pushed oil prices higher, while disappointing Chinese economic growth data added to investor caution.
Brent crude futures rose 1.64% to $86.12 a barrel, and US West Texas Intermediate (WTI) advanced 1.66% to $80.66 a barrel. Sterling strengthened slightly, quoted at $1.3405 early Wednesday, up from $1.3396 at the previous London close.
Gainers & Losers
Top Gainers
- Barratt Redrow +3.06% to £286.70
- ICG +2.24% to £1,830
- Burberry Group +1.64% to £1,086.50
- Smith & Nephew +1.21% to £1,127.50
- Persimmon +1.14% to £1,064.50
- Polar Capital Technology Trust +0.82% to £675
Top Losers
- Fresnillo -3.39% to £2,507
- Antofagasta -2.91% to £3,731
- Endeavour Mining -2.58% to £3,510
- Lion Finance Group -1.40% to £11,290
- Coca-Cola Europacific Partners -1.20% to £7,820
- Games Workshop Group -0.59% to £20,220
China’s Economic Slowdown
China’s economy grew 4.3% year-on-year in the second quarter, its weakest pace since the fourth quarter of 2022, according to the National Bureau of Statistics. The reading missed the Reuters poll forecast of 4.5% and slowed from 5% growth in the first quarter, falling below Beijing’s full-year target range of 4.5% to 5%.
B&M First Quarter Sales Rise
B&M European Value Retail reported first-quarter sales growth of 2%, with revenue climbing to £1.43 billion in the 13 weeks to 27 June. Revenue at B&M UK increased 0.3% to £1.14 billion, though like-for-like sales fell 2.3%.
Antofagasta Under Pressure from Rising Costs
Antofagasta faced headwinds from falling production and rising operational costs. Year-to-date copper production declined 9.5% to 285,000 tonnes, while maintenance at Los Pelambres cut molybdenum output by 18% to 6,100 tonnes. Gold production increased 1.8% to 92,800 ounces, but raw production costs surged 22.8% to $2.8 per pound.
Barratt Redrow Bets on Buybacks
Barratt Redrow committed to returning £400 million to shareholders, citing that buybacks offer better value than larger cash dividends. The group completed 17,667 home sales in the year to 28 June, at the top end of its guidance and up from 16,826 a year earlier. Net cash stood at £772 million, well above the guided range of £550-£650 million.
Global Market Overview
In the US, the Nasdaq climbed 0.9% on semiconductor strength, while the S&P 500 added 0.4% and the Dow Jones edged up just 10 points. In Asia, Tokyo’s Nikkei 225 rose 1.49% to 68,751.51, China’s Shanghai Composite fell 0.29%, Hong Kong’s Hang Seng climbed 1.24%, and South Korea’s Kospi advanced 6.24%. In India, the Nifty 50 dipped 0.02% and the Sensex rose 0.04%.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making any financial decisions.