By Sarah Turner
LONDON (Dow Jones)-- U.K. stocks lost ground on Wednesday to
snap a three-session win streak, falling ahead of the release of
key earnings and economic data.
Investors ignored a recommendation by UBS to buy mining shares
on corrections, as Antofagasta followed copper prices lower with a
3% drop.
Anglo American -- which UBS had upped to buy -- fell 2.3%, and
Rio Tinto fell 1.4%.
GlaxoSmithKline (GSK), Vodafone Group (VOD), Royal Dutch Shell
(RDSA) and Unilever (UL) each lost ground ahead of updates that are
due on Thursday.
With the Bank of England meeting Thursday and key U.S.
employment data out Friday, the U.K. FTSE 100 finished 0.7%, or
30.2 points, lower to 5,253.15.
"It could be the case that we are in fact in the calm before the
storm as the next couple of days promise to jump the volatility up
a couple of notches with the BOE rate decision and Friday's U.S.
jobs report," said James Hughes, market analyst at CMC Markets.
Insurance group Standard Life was the best performer, up 3.5%,
after its fourth-quarter total worldwide sales of life and pensions
products rose 29% to 4.16 billion pounds ($6.66 billion). Strong
growth in U.K. institutional pension sales offset declines in
individual pensions and in its European operations, the firm
said.
Third-party assets under management, which include the group's
investment arm and third-party insurance contracts, rose 25% over
the course of the year to 56.9 billion pounds.
Shares in Prudential plc added 2.6%.
Barclays (BCS) shares rose 2% and Lloyds Banking Group (LYG)
climbed 1.4% after a positive broker note.
"We think bad debts peaked in 2009 and that the funding markets
can continue to improve. This is not in consensus," said analysts
at Bank of America's Merrill Lynch unit.
"If we are correct on margins and the likely pace of bad debt
normalization, Barclays, Lloyds and Royal Bank of Scotland should
re-rate strongly as we move through 2010 and into 2011," the
analysts added.
Outside the top index, shares of online gambling operator
PartyGaming rose 0.1%.
Fourth-quarter revenue rose 32% to $132.2 million, helped by
acquisitions as well as a strong performance in its online casino
and sports-betting arms. The group said adjusted earnings are now
likely to be slightly ahead of expectations.
New player sign-ups in the quarter rose 3% to around 213,000.
The company separately announced the appointment of Per Widerstroem
to a newly created role of chief operating officer.
Services Desk; Dow Jones Newswires; +44-20-7842-9319/9274