FTSE Reverses Lower As Copper’s Decline Weights On The Miners


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 On Tuesday, London’s FTSE 100 saw a decrease as copper miners had a significant impact on the market due to lower copper prices. However, positive updates from companies helped to limit the overall decline. The blue-chip FTSE 100 index was down by 0.74% following its strongest session in over a week on Monday, while the mid-cap FTSE 250 showed a marginal increase. Industrial metal miners experienced a 1.7% loss, with major players like Rio Tinto and Glencore each slipping over 1% as a result of pressure on copper prices caused by growing concerns about sustained weakness in Chinese demand.Glencore, a miner and commodities trader, saw its shares decline by 2.4% to 432.9 pence, making it the top loser on the FTSE 100 index. This drop came after analysts at HSBC reduced the price target from 455p to 435p due to a decrease in commodity prices in June, driven by global uncertainty from elections, conflicts, and trade tensions. HSBC also lowered peer Anglo American’s price target to 2300p from 2450p, citing the removal of GEMCO sales volumes from its estimates following a temporary closure of GEMCO’s operations. As a result, Anglo American’s shares fell by 2.2% to 2,184p, also ranking among the top losers on the FTSE 100 index. Year-to-date, Glencore’s shares have fallen by 8.2%, while Anglo American’s have risen by 10.8%.Compass Group, a British catering company, has seen its shares rise by 3% to 2,257p, making it the top gainer on the FTSE 100 index. The company has raised its full-year guidance, expecting underlying operating profit to grow by more than 15% and organic revenue to increase by more than 10%, compared to previous guidance of profit increasing towards 15% and revenue towards 10%. In the third quarter, organic revenue growth exceeded analysts’ estimates, coming in at 10.3%. The company also reported accelerated net new business growth in Q3, with pricing moderating in line with inflation. The stock of Compass Group has risen by about 2% year-to-date.Beazley, a UK insurer, sees a 2.9% increase in its shares to 668.50p, making it one of the top percentage gainers in the FTSE 100 Index. Despite a global IT glitch on Friday, the insurer maintains its outlook and states that it will not change its current guidance for the full year. The IT outage, caused by a software update from cybersecurity firm CrowdStrike, affected various industries including banks and media companies. Beazley’s stock is up approximately 28% year-to-date, including the gains from the current session.
 Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225

  • Above 8363 opens 8500
  • Primary support 8000
  • Primary objective 8023
  • 5 Day VWAP bearish
  • 20 Day VWAP bearish
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