London FTSE 100 Moves in Narrow Range as Mining Shares Retreat

London stock exchange indexes moved in a narrow range as industrial and mining shares retreated while energy stocks advanced.

Mining and Industrial Sectors Drag on Indices

Precious metal mining companies dropped 1.4% as gold and silver prices softened ahead of upcoming US inflation figures. Industrial metal miners fell 1.7%, with copper producer Antofagasta registering the steepest decline on the FTSE 100 with a 5.6% drop. Divergent market forces also played out across international exchanges during the session. Investing.com noted that global equity markets faced a broader risk-off sentiment driven by technology sell-offs in Wall Street and Asian trading floors, causing the FTSE 100 to erase early gains that had reached over a week-long high. The FTSE 250 index of medium-sized companies rose slightly by 0.05%.

Corporate Deals and Earnings Reports Drive Individual Stock Movements

Energy major British Petroleum climbed 3.7% to its highest level since March after estimating that its refining margins in the third quarter tripled compared to last year. Betting firm Entain rose 4.7% as its US joint venture, BetMGM, posted a 7% increase in third-quarter revenue. Melrose Industries added 3.5% after the owner of GKN Aerospace declared that its Garden Grove facility in California remains on track to resume operations by the fourth quarter.

Fiscal Policy Focus Ahead of GDP and Autumn Budget

Capital Economics deputy chief UK economist Ruth Gregory noted that John Healey is expected to present a compromise budget on October 28 with limited economic fallout, while the Financial Times reported that Healey will not raise capital gains tax to the same level as income tax.

Banking Stocks Rise as Pound Trades Steadily

Trading desks observed banking stocks leading earlier session gains, with Standard Chartered rising 1.84% while HSBC, Lloyds, Barclays, and NatWest advanced between 1.34% and 1.83%. Currency markets showed the British pound trading steadily around 1.3246$ against the US dollar as gilt yields stabilized and money markets priced in the Bank of England’s near-term monetary policy stance ahead of upcoming inflation data.

More on this story: European stock exchanges fall sharply as bond yields and oil prices rise