Energy and mining stocks drag FTSE 100 lower due to weak commodity prices

By Shashank Nayar

(Reuters) – London’s FTSE 100 fell on Monday, dragged down by heavy energy and mining stocks as concerns over demand for commodities returned amid a global rise in coronavirus infections.

The blue-chip FTSE 100 slipped 0.2% with BP, Anglo American, Glencore and Royal Dutch Shell being some of the better brakes.

“The decline appears to be a short-term burst rather than a market-wide concern, as commodity support still appears unwavering,” said David Madden, analyst at Equiti Capital.

The mid-cap index fell 0.2% as the global page recruiting group led the declines despite announcing it would spend £ 100million on shareholder returns amid trading conditions. trading improved in the first half of the year.

The FTSE 100 has gained nearly 10% so far this year, but has lagged far behind its US and European peers, penalized by a resurgence in COVID-19 infections and inflationary fears outweighing the optimism about robust corporate earnings.

As the economy reopens, the market knows that higher inflation won’t be a problem as long as it is in tandem with economic growth, Madden said.

Among other shares, Vecture gained 2.1% after tobacco company Philip Morris raised its bid on the drugmaker to 165 pence ($ 2.29) a share.

Deliveroo jumped 9.9% after its German rival Delivery Hero took a 5.09% stake in the UK food delivery company.

Britain’s largest fund supermarket, Hargreaves Lansdown, fell 9.8% to the bottom of the FTSE 100 after missing earnings estimates, while attracting record new customers thanks to growing retailer participation.

(Reporting by Shashank Nayar in Bangalore; Editing by Subhranshu Sahu and Ramakrishnan M.)


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