Miners pull London's FTSE 100 lower; Unilever gains

Strong earnings, miners lift FTSE 100
Strong earnings, miners lift FTSE 100   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Bansari Mayur Kamdar and Shashank Nayar</p> <p> – London’s <span class="caps">FTSE</span> 100 index fell on Thursday, as miners dropped due to rising troubles in China’s property sector and investors fretted about rate-hike prospects, while Unilever was among the top gainers after posting strong quarterly sales growth.</p> <p>The blue-chip <span class="caps">FTSE</span> 100 index ended 0.5% lower, with miners sliding 3.5% on fresh worries about the heavily indebted property developer China Evergrande Group.</p> <p>Anglo American was among the worst performers on the commodity-heavy <span class="caps">FTSE</span> 100 index, falling 2.8% despite reporting a 2% rise in third-quarter overall production.</p> <p>Other miners Rio Tinto, <span class="caps">BHP</span> Group and Glencore were down between 2.4% and 4.2%.</p> <p>The benchmark <span class="caps">FTSE</span> 100 index has gained 11.5% this year, but has underperformed peers in Europe and the United States as rate hike fears, supply chain concerns, post-Brexit jitters and a resurgence in <span class="caps">COVID</span>-19 infections continue to hurt the market.</p> <p>“Investors have turned cautious as some of the earnings have failed to resurrect the confidence as anticipated earlier,” said Kunal Sawhney, <span class="caps">CEO</span> of Kalkine.</p> <p>“The extended course of <span class="caps">COVID</span>-19 and the subsequent resurgence of infections has materially affected the equity landscape, the primary reason due to which the benchmark <span class="caps">FTSE</span> 100 has not recouped the pandemic losses as Dow Industrials or <span class="caps">DAX</span> did.”</p> <p>Adding to woes, economists polled by Reuters projected inflation to peak at 4% next quarter, while Britain’s health minister Sajid Javid warned that curbs would be brought back if people did not take up vaccination offers as <span class="caps">COVID</span>-19 cases begin to rise.</p> <p>Unilever gained 1.2% after the consumer goods giant beat its third-quarter sales growth forecast and maintained its full-year profit margin outlook. However, its finance chief warned of even higher inflation next year.</p> <p>The domestically focussed mid-cap index eased 0.1% as weakness in consumer discretionary stocks outweighed strong quarterly earnings.</p> <p>Engineering firm Renishaw <span class="caps">PLC</span> rose 11.7% to the top of the mid-cap index after reporting a nearly 146% rise in profit.</p> <p/> <p>Graphic: UK miners face heat from China Evergrande https://fingfx.thomsonreuters.com/gfx/mkt/znpneznymvl/FTSE100%20and%20Miners.png</p> <p/> </div>