Rio Tinto drags FTSE 100 down to 10,490 as miners slump
RIO•Rio Tinto shares slid alongside BP and Shell, contributing to an almost four-point drop in the FTSE 100 to 10,490.5 by 8.15am. Defence and aerospace stocks led by Rolls-Royce rose, offsetting commodity sector weakness.
1. FTSE 100 opens near flat
London’s blue-chip index opened slightly higher but reversed to trade at 10,490.5 by 8.15am, down nearly four points as commodity and energy stocks underperformed.
2. Rio Tinto among mining sector declines
Rio Tinto shares slipped alongside fellow miners BP and Shell as oil and resource prices eased, adding downward pressure to the metals and mining segment of the FTSE 100.
3. Defence rally led by Rolls-Royce
Defence and aerospace names outperformed, with Rolls-Royce posting gains for a second session, providing a partial offset to losses in the commodity complex.
4. Inflation data feeds BoE rate outlook
Encouraging inflation figures drove a weaker pound and reinforced expectations that Bank of England policymakers will keep rates unchanged at their next meeting.
