MW: British shares move lower for first time in eight sessions
FTSE 100 index down 0.4%; BHP Billiton details production; Glaxo results on tap
By Sarah Turner, MarketWatch
LONDON (MarketWatch) -- British shares couldn't extend recent strong gains on Wednesday, with losses for metal stocks dragging as shares traded lower for the first time in eight sessions.
The U.K. FTSE 100 index (UK:UKX 4,478, -3.60, -0.08%) declined 0.4%, or 16.27 points, to 4,464.90.
Other European shares were also pressured, while U.S. stock futures were pointing to a lower open on Wall Street. Asia stocks were mixed. Read more on Asia markets.
The top U.K. share index closed at a level not seen since early June on Tuesday, capping more than a week of gains for the index.
Stocks have had a good run as markets took on board better-than-expected second-quarter earnings from companies such as U.S. heavy-equipment maker Caterpillar.
Mineral extractors rose in the previous session but retreated on Wednesday, with mining giant BHP Billiton (UK:BLT 1,480, -50.50, -3.30%) (BHP 59.56, +0.16, +0.27%) trading down 1.9%.
The firm reported a 10% fall in iron-ore output in the fourth quarter ended in June, and a full-year figure below previous guidance.
BHP Billiton also said in a statement that "underlying demand trends are still being masked by de-stock and stocking activities." See full story.
"We believe the shares are too far ahead of events, especially given scope for mine restart," said analysts at Evolution Securities.
Other mineral extractors under pressure included Rio Tinto (UK:RIO 2,264, -24.55, -1.07%) (RTP 149.89, -1.82, -1.20%) , down 1.6%, and Lonmin (UK:LMI 1,130, -44.00, -3.75%) , down 2.7%.
In the energy markets, light sweet crude-oil futures declined 76 cents at $64.85 a barrel.
Shares of drug maker GlaxoSmithKline (UK:GSK 1,149, -12.00, -1.03%) (GSK 38.14, +0.33, +0.87%) fell 1.1%.
The firm reports second-quarter earnings at midday in London.
Analysts are expecting a net profit of 1.5 billion pounds ($2.4 billion), up 6.1% from last year, and a 12.5% rise in sales to 6.6 billion pounds.
Earnings per share are expected to total 30 pence per share, compared to last year's 28 pence per share, according to a survey of 10 analysts carried out by Dow Jones Newswires.
Meanwhile, banks were mostly lower, with Barclays (UK:BARC 302.20, -7.25, -2.34%) (BCS 20.25, -0.61, -2.92%) down 2.3% and Lloyds Banking Group (UK:LLOY 71.51, -1.94, -2.64%) (LYG 4.84, 0.00, 0.00%) down 1.9%.
