The FTSE 100 closed down 13.47 points, or 0.1%, at 10,515.92 on Wednesday, pressured by weak mining stocks after disappointing Chinese economic growth data. In contrast, the FTSE 250 rose 55.56 points, or 0.2%, to 23,462.39, and the AIM All-Share gained 0.16 points to 765.74.
Chinese GDP Data Disappoints
China's National Bureau of Statistics reported that gross domestic product expanded 4.3% year-on-year in the second quarter, slowing from 5.0% in the first quarter and missing the FXStreet-cited consensus forecast of 4.5%. Quarter-on-quarter, GDP increased 0.9%, which Jim Reid at Deutsche Bank noted was the slowest pace of expansion in over two years.
Dan Coatsworth, head of markets at AJ Bell, said the weak data “spooked investors” in the mining sector, “causing a sell-off amid fears that the Asian superpower might scale back commodity purchases.” He added that the reading “might stir speculation that the Chinese government will dig deeper with economic stimulus measures.”
Mining Stocks Fall
On the FTSE 100, miners Fresnillo, Antofagasta, Anglo American, and Endeavour Mining fell 3.0%, 2.6%, 3.4%, and 2.5% respectively. The biggest fallers included Vodafone, down 4.55p to 112.2p; Anglo American, down 123.0p to 3,547.0p; Airtel Africa, down 11.4p to 337.8p; Fresnillo, down 80.0p to 2,515.0p; and Antofagasta, down 101.0p to 3,742.0p.
European Markets Mixed
In Europe, the CAC 40 in Paris ended up 0.2%, boosted by luxury goods stocks after strong results from Richemont, the Swiss owner of Cartier and Montblanc. Richemont shares jumped 6.7% as it posted total sales of €6.33 billion (£5.38 billion) for the three months to June 30, up 17% from €5.41 billion (£4.6 billion) a year earlier, beating market consensus of €5.88 billion (£4.99 billion). JPMorgan analyst Chiara Battistini called the figures “remarkably strong” with a 7% beat against JPMorgan’s sales estimate.
In Paris, Gucci owner Kering rose 3.6%, LVMH climbed 2.7%, and Hermes gained 2.4%. In London, Burberry, which reports a quarterly update on Friday, rose 2.4%. The DAX 40 in Frankfurt fell 0.6%, while ASML, Europe’s most valuable company, fell 0.4% despite a second-quarter beat-and-raise, as analysts noted mixed guidance.
Wall Street Rises on Soft Inflation
In New York, the Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.2%, and the Nasdaq Composite advanced 0.3%. Wall Street took encouragement from further soft inflation data: the US producer price index dropped 0.3% month-on-month in June, the first contraction since August 2025, according to the US Labor Department. Year-on-year, PPI rose 5.5%, below the 6.0% increase in May (revised from 6.5%) and undershooting the FXStreet consensus of 6.2%.
PayPal surged 18% after Reuters reported a $53 billion (£39.3 billion) takeover approach from payments processor Stripe and private equity firm Advent International. Morgan Stanley edged up 0.6% after reporting a jump in second-quarter earnings, driven by a sharp rise in equities revenue and momentum in investment banking and fixed income.
Currency and Commodity Markets
The euro traded at $1.1437 against the dollar, up from $1.1432 on Tuesday. The dollar was at 162.13 yen, up from 161.96 yen. Sterling rose to $1.3486 from $1.3396 and firmed to €1.1791 from €1.1709. The US 10-year Treasury yield traded flat at 4.56%, while the 30-year yield widened to 5.08% from 5.07%. Brent crude for September delivery fell to $83.71 a barrel from $84.00, amid elevated Middle East tensions after the US renewed its naval blockade of Iranian ports. Gold slipped to $4,048.39 an ounce from $4,085.44.
FTSE 100 Risers and Fallers
The biggest risers on the FTSE 100 were: ICG, up 99.0p to 1,889.0p; St James’s Place, up 49.5p to 1,204.0p; Barratt Redrow, up 11.9p to 290.1p; Persimmon, up 40.5p to 1,093.0p; and Entain, up 19.6p to 574.0p. ICG rose 5.5% after reporting net additions to fee-earning assets of $2.4 billion (£1.78 billion), beating Visible Alpha consensus. Barratt Redrow rose 4.3% after announcing a £386 million share buyback and reporting a “solid” end to financial 2026 with home completions at the top end of guidance.
On the FTSE 250, Vistry rallied 6.6% after recent weakness as CEO Adam Daniels bought 38,372 shares. B&M European Value Retail declined 5.4% as UK like-for-like sales growth missed expectations.
Political Developments
A report in the i Paper suggested incoming Prime Minister Andy Burnham will appoint Home Secretary Shabana Mahmood as Chancellor of the Exchequer, a move seen as more “market friendly” than appointing the more left-leaning Ed Miliband, who may become foreign secretary.
Outlook
Thursday’s global economic calendar includes eurozone trade data, UK GDP figures, US retail sales, and initial jobless claims. The local corporate calendar features a trading statement from Experian and half-year results from Ocado and SSE.
