The second-largest decline was seen by general miner Glencore PLC UK: GLEN BHP Group Ltd. UK: BHP, who saw shares fall 3.78% and 2.46%, respectively, on Thursday, before rounding out the top five declines were Rio Tinto plc (UK) (RIO) and Entain plc (ENT).
Polymetal International Plc(POLY), a general mining company, posted gains of 6.97%. Shares in ITV Plc (ITV), Royal Mail Plc (RMG) (owner as well as provider for delivery services – such companies are also described as postal operators or post office organizations), and Smith & Nephew Pls(SN) (a medical equipment manufacturer that specializes in wound care products)- all recorded increases of 4-6% after experiencing significant losses earlier this week.
As cyclical and energy stocks offset disappointing mining production data, London’s FTSE 100 index pared losses to close unchanged on Thursday. At the same time, gains in airlines and brick maker Ibstock propelled London’s mid-cap index to stay afloat.
Blue-chip stocks (FTSE) were flat, but consumer stocks were Unilever (ULVR.L), Diageo (DGE.L), British American Tobacco (BATS.L), and oil majors Shell (SHEL.L) and BP (BP.L) gained ground.
Likewise, mining stocks (.FTNMX551020) fell 5.1%, but Anglo American (AAL.L) declined 8.8% after its production forecast was lowered due to inflation.
Ian Williams, economist and strategist at Peel Hunt, said, “The earnings season is probably at the forefront.”
“As labor and raw material costs rise and supply chain disruptions, much of the risk to revenues lies in costs rather than revenues.”
In the March quarter, BHP Group’s iron ore production fell short of expectations amid the pandemic-related job cuts.
Due to an ongoing drought and lower grades, Antofagasta’s (ANTO.L) first-quarter copper output declined 24% year-on-year to 138,800 tons.
A Bank of England rate setter, Katherine Mann said borrowing costs are likely to increase further as consumer demand is unlikely to fall fast enough to prevent companies from raising rates.
Without any further guidance on monetary policy, Williams said, “we are in a no-man’s land.”
Due to a wave of optimistic US forecasts, the domestically focused mid-cap index FTSE 250 (.FTMC,) rose 0.4%, while Wizz Air and EasyJet gained 4.4% and 4.9%, respectively.
Shares of Ibstock (IBST.L) grew 8.8% as the company forecasted better-than-expected full-year results.
Pest control provider Rentokil Initial (RTO.L) gained 1.8% on strong performance in the current quarter.
FTSE100 technical analysis:
The daily chart of FTSE100 reveals a negative outlook. However, the price is still above the key moving averages. If the price manages to break below the 20-period SMA, the outlook will further turn negative.
Alternatively, if the price breaks above the swing highs of 7,700, it will gain more traction and may gear up for another bull run.