FTSE Stages Slow Recovery

Fri, 5th Jul 2019

The FTSE 100 staged a slow recovery as house builders and mining companies remained a drag on the markets.

The markets were still moving slowly, with mining companies sliding slightly because of a fall in metals prices over the last few days, and house builders struggling because of a 0.3% decline in UK house prices over the month of June.

The FTSE 100 slipped by 12 points during the early hours of trading. One of the poorest performers was Rio Tinto PLC, who shed 2.7 percent, down to 4,781p. This slip occurred in spite of JPMorgan raising its price target for Rio Tinto from 5,200p to 5,670p, and the stock being rated as ‘overweight’ by the bank.

Other mining major BHP Group PLC shed 1.9 percent, down to 1,972.8p, after JP Morgan raised its price target for the company from 2,080p to 2,060p. Peer Anglo American also dropped by two percent, again in spite of a small price target upgrade from JP Morgan.

One of the few gainers in the sector was a lower listed company, Arc Minerals Limited, who gained 4.8 percent after it raised its stake in Zaco Limited up to 47.5 percent, from 42.5 percent.

Yesterday saw very little movement in the markets, as the closure of the US markets for Independence Day significantly reduced trading volume. Today, with the US Jobs Report pending, there is the expectation that the markets will show much more activity, and that the Fed may finally act on rates.

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