Miners and broker downgrades weigh on UK’s FTSE 100

Pedestrians leave and enter the London Stock Exchange in London, Britain August 15, 2017. REUTERS/Neil Hall

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  • Property values ​​under pressure
  • Plus500 wins after upbeat results
  • FTSE 100 down 0.2%, FTSE 250 down 0.7%

July 12 (Reuters) – The UK’s main stock index fell on Tuesday as miners came under pressure for a third day after metal prices fell following strict COVID-19 lockdowns in the main consumer China, while bearish brokerage stocks weighed on real estate stocks.

The industrial and mining metals index (.FTNMX551020) fell 1.5% as copper prices fell on a strong US dollar, lockdowns in China and rising benchmark interest rates worldwide.

The blue-chip FTSE 100 (.FTSE) was down 0.2% and the domestically focused FTSE 250 index (.FTMC) was down 0.7%.

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“The FTSE 100 fell at the open after weak trading in the US and Asia as investors continue to weigh the risks associated with the war in Ukraine, stubborn inflationary pressures and Chinese lockdowns,” said Danni Hewson, financial analyst AJ Bell, in a note.

“This cocktail of worries is preventing the markets from moving forward in any tangible way.”

An industry survey showed UK shoppers cut spending for the third month in a row and sales volumes fell the most since being hit hard by the pandemic, with soaring inflation having weighed on the economy. Read more

Meanwhile, Britain’s new prime minister will be announced on September 5, with the first votes to start weeding out candidates in a crowded and increasingly unpredictable and divisive contest to replace Boris Johnson this week. Read more

Property companies Hammerson (HMSO.L), British Land (BLND.L) and Land Securities (LAND.L) fell between 3.7% and 4% after the Royal Bank of Canada downgraded their shares, saying rates higher interest rates and deteriorating credit spreads and recessionary tendencies place the sector in “uncharted territory”.

Among mid-caps, shares of Plus500 (PLUSP.L) climbed 2% after the online trading platform forecast its full-year revenue and earnings ahead of market expectations, benefiting from a increased market volatility.

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Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips

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