LONDON MARKETS: Miners, Banks Drive London Stocks To Finish In The Red
30 November 2018 - 9:07PM
Dow Jones News
By Anneken Tappe, MarketWatch , Emily Horton
U.K. stocks finished the session lower on Friday, logging a drop
for the month of November, its second in a row, as mining stocks
fell on worries over China's economy and investors looked ahead to
the outcome of a key G-20 meeting between the U.S. and Chinese
presidents.
The British pound slipped on the back of dollar strength and
continuous worries over whether U.K. Prime Minister Theresa May's
Brexit deal will get approved by Parliament next month.
What are markets doing?
The FTSE 100 stock index closed down 0.8% at 6,980.24, erasing
Thursday's gains. While the benchmark gained 0.4% on the week, it
logged a 2.1% drop for the month of November, its second in a row,
according to Dow Jones Market Data.
Sterling last bought to $1.2745, compared with $1.2788 late
Thursday in New York.
What is driving the market?
Ahead of the G-20 leaders summit this weekend, May promised a
"good deal" for the global economy from the Brexit agreement,
according to Sky News
(https://news.sky.com/story/theresa-may-promises-world-leaders-economic-boost-from-brexit-deal-11567281)
(https://news.sky.com/story/theresa-may-promises-world-leaders-economic-boost-from-brexit-deal-11567281)
(https://news.sky.com/story/theresa-may-promises-world-leaders-economic-boost-from-brexit-deal-11567281)
(https://news.sky.com/story/theresa-may-promises-world-leaders-economic-boost-from-brexit-deal-11567281)
(https://news.sky.com/story/theresa-may-promises-world-leaders-economic-boost-from-brexit-deal-11567281).
The U.K.'s currency didn't show itself too impressed with her
statement, also struggling with a stronger dollar, and slipped on
fears she faces an uphill battle with the deal next month.
Meanwhile, investors focused on stalling factory activity
(http://www.marketwatch.com/story/chinas-factory-activity-stalls-in-november-2018-11-30)
and weak construction data
(http://www.marketwatch.com/story/china-nonmanufacturing-pmi-hits-15-month-low-2018-11-30)
from China. U.K.-traded mining stocks are susceptible to any signs
of a slowdown in the world's second-largest economy, which is a big
consumer of resource products.
Read:China's manufacturing report highlights economic weakness
just as G-20 gets rolling
(http://www.marketwatch.com/story/chinas-manufacturing-report-highlights-economic-weakness-just-as-g-20-gets-rolling-2018-11-30)
On top of that, market participants focused on the G-20 meeting
in Argentina, where President Donald Trump and Chinese Premier Xi
Jinping are set to meet on Saturday.
Read:Watch out for December 'risk liquidation' if Trump/Xi
meeting disappoints
(http://www.marketwatch.com/story/watch-out-for-december-risk-liquidation-if-trumpxi-meeting-disappoints-2018-11-30)
What stocks are active?
Copper miner Antofagasta (ANTO.LN) closed 4.3%, and Rio Tinto
PLC (RIO.LN) (RIO.LN) ended 1.7% lower. BHP Group PLC
(BHP.AU)(BHP.LN) closed 1.9% lower and Glencore PLC (GLEN.LN)
dropped to end the session 1.1% down.
Read:Oil slips back toward $50
(http://www.marketwatch.com/story/oil-slips-back-toward-50-ahead-of-looming-g-20-opec-production-talks-2018-11-30)
Banking stocks also weighed, with HSBC Holding PLC (HSBA.LN)
(HSBA.LN) down 0.7% at the close and Lloyds Banking Group PLC
(LLOY.LN) finished 1.4% lower.
(END) Dow Jones Newswires
November 30, 2018 14:52 ET (19:52 GMT)
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