In the UK the FTSE 100 Index of leading shares declined for a fifth day losing 30.10 points, or 0.6%, to 5292.2 and is poised for its longest losing streak in 10 months. Raw materials producers BHP Billiton and Rio Tinto Group led the drop as copper prices tumbled.
BHP Billiton, the world's biggest mining company, fell 24p, or 2.9%, to 813p, with Rio Tinto, the No. 3 miner, slipping 49p, or 2.4%, to 1,989p.
Copper prices in New York slid as much as 3.7% as metal inventories in warehouses monitored by the London Metal Exchange rose to their highest point in almost nine months.
Copper futures for September delivery dropped almost $0.06 to $1.656 a pound. Prices had earlier dropped to $1.651 a pound. The metal reached a record $1.738 yesterday.
The FTSE 100 extended losses after a US government report showed producer prices in the world's biggest economy rose last month by more than economists predicted, heightening concern the Federal Reserve will step up the pace of interest- rate increases.
And ten stocks in the FTSE 100, including Anglo American and Barclays, traded today without the right to their latest dividend, helping to push down the benchmark. British Airways Plc dropped to a two-week low slipping 6.25p, or 1.8% to 286.25p.
Balfour Beatty, the U.K.'s biggest construction company, fell 7.75p to 332.5p, even after saying first-half net income advanced 39% to £57m.
Meanwhile EasyJet rose 3.25p to 298.5p after it said it had hired SR Technics to provide maintenance to its fleet of Airbus A319 airplanes in a 10-year contract worth $1bn. Ottakar's also rose 13.5p to 340p. Shares in the company yesterday had their biggest gain ever after the company said it's discussing a possible offer from private-equity suitors and managers including co-founder and Chairman Philip Dunne.
Schroders slipped 6.5p to 869p. The 201-year-old London-based money manager had its shares cut to ``hold'' from ``buy'' by analysts after it said yesterday profit increased 58% in the first half after individuals invested more in the company's mutual funds. The company also reported a decrease in net sales at its retail unit.
In the US, the Dow Jones Industrial Average advanced 50.23 points to 10,563.68 in morning trading after Hewlett-Packard reported profits that beat analysts' estimates. . The earnings overshadowed a government report on producer prices that showed inflation may be accelerating. Benchmark indexes extended gains as the price of oil retreated.
Hewlett-Packard climbed $2.45, or 10%, to $26.15 for the best performance in the benchmark. The company said yesterday that fiscal third-quarter profit, excluding some costs, was $0.36 a share which beat analysts expectations by $0.05 a share.
Crude oil for September delivery also lost 2.3% to $64.55 a barrel in New York this morning erasing earlier gains as a government report showed that US inventories rose last week. Oil prices reached a record $67.10 a barrel 12 August.
Abercrombie & Fitch. slumped $3.69 to $57.54. The casual-clothing retailer catering mainly to teenagers said it had a second-quarter profit of $0.63 a share. Photronics slid $3.79 to $21.19. The No. 2 producer of templates used to make semiconductors said that it had fiscal third-quarter revenue of $114.9m, less than the average estimate of $116.8m from analysts.IFAonline
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