- Anglo American
- 26 June 2025 17:44:08
Source: Sharecast
The FTSE 100 index edged up 0.19% to close at 8,735.60 points, while the FTSE 250 gained 0.83% to end the session at 21,474.66 points.
In currency markets, sterling was last up 0.61% on the dollar to trade at $1.3747, while it added 0.09% against the euro, changing hands at €1.1731.
“UK stocks edged higher on Thursday, with the midcap index climbing to a two-week high as investors digested a mix of corporate earnings and assessed the outlook for interest rates amid data showing a decline in consumer spending,” said TickMill market strategy partner Patrick Munnelly.
“Attention turned to Shell after the oil giant dismissed speculation about potential talks to acquire rival BP, with shares of both companies posting modest gains during the morning session.
“Mining stocks led the day's sector gains, buoyed by rising mineral prices as a weaker dollar made commodities more attractive to investors using other currencies.”
Munnelly noted that shares of Fresnillo, Antofagasta, Anglo American, and Endeavour Mining all advanced by over 2%.
“The midcap index has outperformed the FTSE 100 this quarter, positioning itself for its strongest quarterly growth since late 2020.
“Analysts note that companies focused on domestic markets have largely been insulated from trade-related uncertainties, while the UK remains one of the few nations with a trade agreement in place with the United States.”
UK retail sales slump, US economy contracts more than expected
In economic news, retail sales in the UK slumped in June, adding to signs of weakening consumer confidence.
The latest survey from the Confederation of British Industry showed the retail sales balance fell to -46 from -27 in May, well below expectations of -32 and marking the ninth consecutive month of decline.
Retailers expect little relief ahead, with a balance of -38 forecasting sales in July to also be below seasonal norms.
While online sales remained positive, momentum slowed, with the balance dropping to 6 from 37 in May.
“Many firms [are] reporting that consumer caution continues to hold back sales,” said Martin Sartorius, principal economist at the CBI.
“These data suggest that underlying activity remains subdued in the distribution sector.”
Bank of England governor Andrew Bailey meanwhile acknowledged the growing economic uncertainty driven by a recent uptick in UK inflation, particularly food prices.
Speaking to the British Chambers of Commerce, Bailey cited rising costs for meat, chocolate and soft drinks and warned of potential second-round inflation effects.
He noted encouraging signs of a cooling labour market, suggesting that widening economic slack should support a gradual return of inflation to the 2% target over time.
In Germany, consumer sentiment remained weak, as the GfK forward-looking consumer climate index fell slightly to -20.3 for July from -20.0 in June, weighed down by a sharp rise in the propensity to save, which reached a 14-month high.
While income and economic expectations improved, willingness to spend showed almost no change.
Across the Atlantic, the US economy shrank at an annualised rate of 0.5% in the first quarter, marking the first contraction in three years.
The final figure was revised down from a 0.2% decline, largely due to a 37.9% surge in imports ahead of new tariffs under president Donald Trump’s trade policies.
Federal government spending also recorded its steepest drop since 1986. Consumer spending grew by just 0.5%, signalling a notable slowdown.
Inflation pressures persisted, with the GDP deflator rising 3.8% and core PCE inflation at 3.5%.
JPMorgan cut its 2025 U.S. growth forecast from 2% to 1.3%, citing rising stagflation risks.
However, there were signs of resilience in parts of the American economy, with initial jobless claims falling by 10,000 to 236,000 last week, while pending home sales rose 1.8% month-on-month in May, marking the first annual increase in six months.
Miners rise alongside copper prices, ex-divs prove a drag
On London’s equity markets, heavyweight miners led the advance as copper prices rose, with Anglo American climbing 7.26%, Glencore up 5.82%, and Antofagasta gaining 6.14%.
Private equity firm 3i Group also performed strongly, rising 4.84% after reporting that sales at its largest holding, Dutch discount retailer Action, rose 6.9% on a like-for-like basis over the first 25 weeks of the year.
Entain jumped 5.24% after Goldman Sachs upgraded the Ladbrokes owner to 'buy'.
Inchcape advanced 5.87% as the automotive distributor reiterated its full-year guidance and reported resilient trading in the first half.
Outsourcer Serco gained 2.69% following a strong first-half update and news that Keith Williams, chair of Halfords, would become its next board chair.
Oil majors were in focus after Shell clarified it has no intention of making an offer for BP.
In a brief statement in response to media speculation on Wednesday, Shell said it had not been actively considering making an offer for BP, had not made an approach, and no talks had taken place with regards to a possible offer.
“Structurally lower oil prices are causing the majors to look at their options, but given Shell's superior asset quality and balance sheet, any combination may be difficult for its shareholders to stomach,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
“Cherry picking some flagship assets could be another option, but that's unlikely to satisfy BP investors.
“For now, the focus for Shell is likely to remain on buying back its own shares.”
Shell closed marginally higher, up 0.23%, while BP rose 1.44%.
On the downside, British American Tobacco fell 2.05% as it traded ex-dividend.
B&M European Value Retail dropped 3.47%, with Premier Foods, Templeton Emerging Markets Investment Trust and Ocean Wilsons Holdings also declining for the same reason.
Melrose Industries edged down 0.38% after a downgrade from Kepler Cheuvreux.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,735.60 0.19%
FTSE 250 (MCX) 21,474.66 0.83%
techMARK (TASX) 5,072.13 0.86%
FTSE 100 - Risers
Anglo American (AAL) 2,143.50p 6.88%
Antofagasta (ANTO) 1,830.00p 6.03%
Glencore (GLEN) 288.20p 5.45%
Entain (ENT) 900.00p 5.24%
3i Group (III) 4,138.00p 4.79%
JD Sports Fashion (JD.) 81.70p 4.18%
St James's Place (STJ) 1,166.50p 3.97%
Fresnillo (FRES) 1,496.00p 3.96%
BAE Systems (BA.) 1,887.50p 3.77%
Rio Tinto (RIO) 4,267.50p 3.48%
FTSE 100 - Fallers
Unilever (ULVR) 4,388.00p -2.53%
British American Tobacco (BATS) 3,443.00p -2.10%
Hikma Pharmaceuticals (HIK) 1,999.00p -1.82%
HSBC Holdings (HSBA) 875.50p -1.63%
Haleon (HLN) 377.60p -1.51%
Experian (EXPN) 3,779.00p -1.43%
Reckitt Benckiser Group (RKT) 4,962.00p -1.35%
Informa (INF) 797.80p -1.34%
Centrica (CNA) 163.20p -1.12%
AstraZeneca (AZN) 10,144.00p -1.01%
FTSE 250 - Risers
QinetiQ Group (QQ.) 509.50p 7.31%
Oxford Nanopore Technologies (ONT) 135.50p 7.28%
Inchcape (INCH) 723.00p 5.87%
Chemring Group (CHG) 577.00p 4.91%
Hays (HAS) 70.00p 4.32%
Pagegroup (PAGE) 262.60p 4.04%
Hochschild Mining (HOC) 258.40p 3.86%
Howden Joinery Group (HWDN) 862.50p 3.73%
Morgan Advanced Materials (MGAM) 218.50p 3.55%
HGCapital Trust (HGT) 505.00p 3.48%
FTSE 250 - Fallers
Moonpig Group (MOON) 221.00p -9.24%
W.A.G Payment Solutions (WPS) 83.60p -5.00%
B&M European Value Retail S.A. (DI) (BME) 267.40p -3.43%
Foresight Group Holdings Limited NPV (FSG) 408.00p -3.32%
Ibstock (IBST) 150.80p -2.96%
SDCL Efficiency Income Trust (SEIT) 54.40p -2.86%
Ocean Wilsons Holdings Ltd. (OCN) 1,495.00p -2.61%
TR Property Inv Trust (TRY) 329.00p -2.37%
Watches of Switzerland Group (WOSG) 396.80p -2.31%
Ocado Group (OCDO) 229.30p -1.67%