London’s FTSE 100 closed lower for the fourth consecutive session on Thursday, sliding 0.69% as mining and energy sector losses offset stronger-than-expected UK economic data.
The UK economy expanded 0.4% in the second quarter, matching forecasts, after recording 0.6% growth in the prior quarter, according to preliminary data from the Office for National Statistics.
GDP also climbed 0.3% in June compared with May, surpassing expectations for no growth and offering a modest boost to sentiment around the UK’s economic trajectory.
Berenberg said the data showed the UK economy had held up better than expected despite higher energy prices and mortgage rates, signaling resilience in the face of ongoing financial pressures.
The research firm stated: “We still expect quarter-over-quarter growth to slow in H2 as changing seasonal patterns exert their drags and the weakness of the labour market weighs on household incomes.”
Berenberg added that “the gain in GDP in June and the possibility of a sustained tailwind from AI infrastructure investment skews the risks towards a better outcome,” maintaining its view that the Bank of England could resume cutting interest rates by the end of 2026.
Miner Antofagasta (ANTO.L) was the biggest faller on the blue-chip index, plunging 6.08% after cutting its 2026 copper production guidance to between 625,000 tonnes and 655,000 tonnes, down from a prior range of 650,000 tonnes to 700,000 tonnes.
RBC Capital Markets noted it had expected a guidance downgrade but pointed out that storm-related disruptions had removed approximately 10,000 to 15,000 tonnes of production, with Antofagasta appearing more heavily impacted than peers such as Lundin, which maintained its guidance.
BofA Global Research trimmed Antofagasta’s price target to 46 pounds sterling from 47 pounds following the production guidance revision, reflecting the reduced output outlook heading into the second half of the year.
Rio Tinto Group (RIO) fell 4.77% after its aluminum smelter joint venture with Gove Aluminium Finance and Norsk Hydro pledged AU$1.1 billion through 2038 under a new agreement with the governments of Australia and New South Wales, including AU$100 million earmarked for decarbonization of Australia’s largest aluminum smelter, Tomago Aluminium.
Sports betting and gambling company Entain (ENT.L) declined 2.96% despite reporting improved financial results, with its interim loss after tax narrowing to 11.4 million pounds from 85.8 million pounds year over year, while revenue increased to 2.51 billion pounds from 2.34 billion pounds.
On the geopolitical front, Pakistan’s foreign ministry said wider peace talks between the US and Iran had reached an impasse, adding further uncertainty to global markets already navigating elevated commodity price volatility.
Deutsche Bank Research said Iran was carrying out a military overhaul as part of an “offensive doctrine,” citing a Revolutionary Guard general, adding another layer of geopolitical risk for investors monitoring the region.
