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FTSE falls, set to snap three-week winning streak

Published 22/04/2016, 14:44
© Reuters. People walk through the lobby of the London Stock Exchange in London
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By Kit Rees

LONDON (Reuters) - Britain's benchmark shares index fell on Friday as a drop in mining stocks and luxury goods group Burberry (L:BRBY) weighed on the market, which was heading towards its first weekly loss in a month.

The blue-chip FTSE 100 index (FTSE) was down 1.2 percent at 6,305.77 points, set to snap a three-week stretch of gains and slipping from a four-month high reached earlier in the week.

Mining stocks such as Anglo American (L:AAL) and Rio Tinto (L:RIO) were the worst performers, hit by a drop in copper prices. [MET/L]

Commodity prices have been under pressure throughout 2016 on concerns about a China-led global economic slowdown.

"Commodities have had a spectacular run over the past few months, but that doesn't really change the fundamental story," said IG analyst Chris Beauchamp, who added that any future gains in the mining stocks look limited at the moment.

Burberry (L:BRBY), meanwhile, fell by 1.7 percent after French peer Kering (PA:PRTP) reported a slowdown in growth at its premium Gucci brand.

© Reuters. People walk through the lobby of the London Stock Exchange in London

Supermarket chain Sainsbury (L:SBRY), however, rose 1.5 percent after Deutsche Bank (DE:DBKGn) raised its rating on the company to "buy" from "hold".

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