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Miners drag FTSE 100 from 16-month highs

4 minute read

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

  • Whitbread tops FTSE 100 after signs of demand pick-up
  • Trainline surges after higher group net ticket sales
  • FTSE 100 down 0.4%, FTSE 250 off 0.4%

June 17 (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 (.FTSE) ended 0.4% down, snapping its five-day winning streak and marked its biggest percentage fall in two weeks.

Base and precious metal miners (.FTNMX551020), (.FTNMX551030) slid 3.0% and 3.5% respectively, as commodity prices slipped after the Fed signalled it could raise rates earlier than expected. read more

"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 (.FTMC) declined 0.4%. Dr. Martens (DOCS.L) 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. read more

Oil majors BP (BP.L) and Royal Dutch Shell (RDSa.L) fell 1.5% and 0.7% respectively, tracking weaker crude.

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. read more

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

While travel-related stocks (.FTNMX405010) gained 0.6% as companies, including TUI AG , InterContinental Hotels Group PLC (IHG.L) and Jet2 (JET2.L), rose between 1.1% and 4.4%.

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

Trainline (TRNT.L) climbed 5.1% after the rail operator's group net ticket sales hit the highest since the start of the pandemic.

Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu

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