BLBG:U.K. Stocks Drop as Commodity Producers Fall; Shire Gains
U.K. stocks retreated, following two weeks of losses for the FTSE 100 (UKX) Index, as mining companies fell, while investors awaited Wednesday’s release of the minutes from the last Federal Open Market Committee meeting.
Glencore Xstrata Plc slid 1.8 percent after Reuters reported that the mining company created three months ago may write down as much as $7 billion of assets it inherited from Xstrata. Fresnillo Plc (FRES) and Rio Tinto Group also declined, as prices for silver and copper fell. Shire Plc (SHP) added 2.2 percent after the Sunday Times reported that the drugmaker has hired Lazard Ltd. to help it defend against a possible takeover bid.
The FTSE 100 decreased 19.23 points, or 0.3 percent, to 6,480.76 at 8:42 a.m. in London. The broader FTSE All-Share Index slipped 0.2 percent today, while Ireland’s ISEQ Index climbed 0.3 percent.
The volume of shares changing hands in FTSE-100 listed companies was 34 percent lower than the 100-day average, data compiled by Bloomberg show.
The FTSE 100 declined 1.3 percent last week, its biggest drop since June, as speculation increased that the Fed will reduce the pace of bond buying as the U.S. economy improves.
To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
