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REFILE-Concerns over global growth peg back Britain's FTSE
June 12, 2014 / 8:05 AM / 3 years ago

REFILE-Concerns over global growth peg back Britain's FTSE

(Corrects typo in name of analyst in fourth paragraph)
    * FTSE 100 down 0.1 percent
    * Miners under pressure on China demand concerns
    * Global growth downgrades, pound strength hit performance

    By Alistair Smout
    EDINBURGH, June 12 (Reuters) - Britain's top share index
edged lower on Thursday, pegged backed by globally exposed
stocks sensitive to optimism on the economy, hemming the FTSE
into its recent range.
    Miners fell 1.5 percent and accounted for 6 of
the top 10 fallers on the FTSE 100, near a three month low.
    The sector suffered as copper was pegged back at one month
lows, with investors fretful over demand in China, the world's
top metals consumer. 
    "Industrial metals are weak, they are not bouncing
convincingly. No real medium term strength, just short term
improvements that do not last," Valerie Gastaldy, who heads up
technical analysis firm Day By Day, said, adding that there were
"plenty of reasons" for miners to be falling.
    Stocks remained weak for a second straight day after the
World Bank trimmed its global growth forecast late on Tuesday,
saying a confluence of events, from the Ukraine crisis to
unusually cold weather in the United States, dampened economic
expansion in the first half of the year. 
    Evaporating confidence in the strength of global growth has
dented the FTSE 100's performance so far year to date, which
unlike the U.S. S&P 500 has been unable to make new all
time highs.
    The heavily weighted mining sectors is down 1.1 percent in
    In all, the FTSE 100 was down 0.1 percent to
6,834.91 points, taking its yearly return so far to 1.2 percent,
compared to a 6 percent gain for the French CAC and a
5.8 percent rise for the euro zone's EuroSTOXX 50.
    The UK's underperformance against the rest of Europe has
been exacerbated by further monetary easing in the euro zone,
which has strengthened the pound in comparison to the euro,
hitting exporters.
    This has seen the FTSE 100 remain in a tight 130 point range
that has persisted since the beginning of May, while other
European indexes have pushed up to new multi-year highs, buoyed
by stimulus from the European Central Bank.
    The index is down 0.4 percent this week, marking the third
time it has failed to break out of the range in the last six
    "The UK FTSE remains locked in a tight... range, with
catalysts lacking for a break either way," Mike van Dulken, head
of research at Accendo Markets, said in a note.
    "Another failure to regain the prior highs... adds to the
trend of recent falling highs."

 (Reporting by Alistair Smout; Editing by Alexandra Hudson)

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