UKX FTSE 100 Index

By Mark DeCambre, MarketWatch

Antofagasta's shares slump as it warns on trade tensions

The U.K.'s main stock index struggled to gain altitude on Tuesday, giving up gains as losses for mining giants weighed.

How markets are performing

The FTSE 100 fell 30.81 points, or 0.4%, to close at 7,611.65, after a 0.3% decline for the index on Monday.

The British blue-chip gauge is showing a drop of 1% so far this year.

The pound was at $1.2721, giving up a modest earlier gain and down from $1.2766 late Monday in New York. Sterling was stronger against the euro, with the shared currency buying GBP0.8914, compared with GBP0.9007 late Monday.

What's moving markets

Shares of copper miner (http://www.marketwatch.com/story/antofagasta-posts-profit-drop-backs-outlook-2018-08-14)Antofagasta PLC(ANTO.LN) weighed on the British index after the company cited the impact of tariff tensions between the U.S. and other trade partners as it reported earnings. It described the tariff threats as creating "considerable market uncertainty, (https://www.ft.com/content/4b94307a-9f8c-11e8-85da-eeb7a9ce36e4)" though the company said the outlook was strong. Earnings before interest, taxes, depreciation and amortization, or Ebitda, for the six months ended June 30 were $904.2 million, down from $1.08 billion the previous year.

Markets in Europe were somewhat more buoyant as a punishing drop in the Turkish lira moderated. Market participants are betting that the recent plunge in the country's currency may not infect other regions in Europe.

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What are strategists saying?

"A stabilization in the Turkish lira has helped European markets open slightly higher this morning," wrote Michael Hewson, chief market analyst at CMC Markets U.K.

"Antofagasta sounded a warning on trade tensions as it unveiled results this morning, which overall contained little in the way of good news," said Chris Beauchamp, chief market analyst at IG.

Stocks in focus

Shares of Antofagasta slumped 7% after its results.

Other miners fell in tandem, with Fresnillo PLC(FRES.LN) off 1.5% and Rio Tinto PLC shares (RIO.LN) down 1.3%.

Meanwhile, insurer esure Group PLC's stock (ESUR.LN) rose nearly 4% after the company accepted a takeover bid from Bain Capital.

(END) Dow Jones Newswires

August 14, 2018 12:10 ET (16:10 GMT)

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