UK shares experienced a slight decline on Wednesday, impacted by a sell-off in mining stocks as metal prices continued to drop, while retailer Tesco saw gains following a positive profit forecast.
The FTSE 100, the UK’s main index, slipped 0.4% by 0705 GMT, while the mid-cap FTSE 250 was down by 0.6%.
Industrial metal miners saw a decline of 0.9%, while precious metal miners experienced a drop of 1.6%, mirroring the fall in metal prices, particularly copper and gold.
However, Tesco’s shares rose by 1.3% after the country’s largest retailer raised its annual profit forecast and indicated that food inflation would continue to decrease.
Another notable development in the retail industry was the news that fashion retailer Superdry’s shares surged by over 17% after announcing plans to sell its intellectual property assets in South Asia to Reliance Retail.
On the other hand, energy company BP saw a 0.4% fall in its shares following reports from Reuters that the oil major is considering the sale of a 49% stake in its U.S. oil and gas pipeline network in the Gulf of Mexico for up to $1 billion.
Investors are eagerly anticipating the release of the UK services sector activity readings for September, expected at 0830 GMT, which will provide insights into the overall health of the economy.
The decline in UK shares is attributable to the ongoing decrease in metal prices, leading to a sell-off in mining stocks. However, the positive profit forecast from Tesco has provided some respite, leading to a rise in its shares. The retail sector also saw Superdry’s shares soar with the announcement of its asset sale. BP’s shares experienced a slight dip amid reports of the company’s potential sale of a stake in its U.S. pipeline network. Investors will be closely monitoring the upcoming readings on UK services sector activity for further guidance on the state of the economy.
More detail via Investing.com UK here… ( Image via Investing.com UK )