By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- Losses among mining stocks dragged the
U.K.'s FTSE 100 index lower Thursday, putting the index on track
for its second straight decline.
The FTSE 100 index fell 0.1% to 6,832.32, with Anglo American
PLC shares becoming the sharpest decliners. They fell 3.4% after
Morgan Stanley cut the miner to an underweight rating from equal
weight.
Also among the FTSE's worst price performers, shares of miner
Rio Tinto PLC (RIO) dropped 3% and BHP Billiton PLC (BHP) lost
2.1%. Morgan Stanley cut its price targets on Anglo American, Rio
Tinto and BHP as it reduced its price assumptions for iron ore for
2014 through 2019, according to Dow Jones Newswires.
In the wake of the World Bank's lowered 2014 economic growth
forecast, investors have "taken as a cue to sell FTSE mining stocks
once again," and push the sector to three-month lows, said David
Madden, market analyst at IG, in a note Thursday.
The World Bank on Wednesday cut its global economic growth
projection to 2.8% for the year, from its 3.2% forecast in January,
though it said growth in the U.S. and Europe will accelerate this
year.
Also heading lower Thursday, shares of copper producer
Antofagasta PLC gave up 1.6%.
Outside of the FTSE 100, Mulberry Group PLC shares rose 0.2% as
the luxury-goods retailer said it will expand lower-priced
offerings following the successful launch of less-expensive
handbags. Mulberry's annual profit fell 46%, while sales dipped to
163.5 million pounds ($275.16 million).
On the broader economic front, U.K. prices for housing rose in
May, but demand shows signs of slowing, according to figures from
the Royal Institution of Chartered Surveyors.
More news from MarketWatch:
Uber's $18 billion valuation reflects froth but not a bubble
Militants overrun Tikrit, advance on Baghdad
The backroom deal that took bazooka out of ECB's hands
Subscribe to WSJ: http://online.wsj.com?mod=djnwires