UK shares opened marginally lower due to a sell-off in mining equities as major metal prices fell due to worries about the Middle East conflict. Investors were cautious ahead of important economic data coming out of the United States.
UK stocks slip: By 0704 GMT, the FTSE 100 index had decreased 0.1%, while the mid-cap index had decreased 0.2%.
While precious metal miners suffered a 0.3% loss, industrial metal miners dropped 0.8% as the US dollar and Treasury yields firmed ahead of this week’s economic data and speech by Federal Reserve Chair Jerome Powell.
Later in the day, the US will release data on retail sales and industrial production, and Powell’s speech on Thursday may shed further light on the US central bank’s stance on interest rates.
The British government is mulling a new fee on online gambling companies of up to 1% to finance research, prevention, and treatment of gambling addiction, according to news that caused shares of gambling company 888 Holdings to drop 1.5%.
Bellway lost 3.3% of its value as the home builder revealed a decline in annual earnings and issued a warning to construct 31% fewer homes in 2024 as high mortgage rates hurt demand.
The index for homebuilders dropped 1.6%. In the meantime, shares of engineering major Rolls-Royce rose 1.5% after the company announced it will eliminate between 2,000 and 2,500 positions across its global operations.
Added 0.8% was the larger aerospace and defence index.
Data revealed that after reaching a previous record high, growth in British workers’ regular pay declined for the first time since January, and job openings also decreased in the three months leading up to the end of August.