European shares took a dip despite a surge in gold prices that bolstered mining stocks.
The UK's premier stock index, the FTSE 100, edged into negative territory on Tuesday, despite a rally in gold prices that provided a significant lift to precious metal miners.
The blue-chip index closed down by 8.68 points, or 0.11%, ending the day at 7,934.79. Leading the charge was gold miner Fresnillo, which soared to the top of the FTSE 100 with an approximate 4.5% increase as gold spot prices reached new record highs.
During the trading session, gold hit nearly $2,365 (£1,866) per ounce, spurred by investors' enthusiasm and central banks like China's accumulating gold reserves. Copper specialist Antofagasta and mining giant Anglo American also saw their stocks climb, ranking among the top performers on the FTSE 100 for the day.
However, other major European indices didn't fare as well, reversing the upward trend from Monday. Frankfurt's Dax fell by 1.32%, while Paris's Cac 40 ended the day 0.86% down. Stateside, the S&P 500 was down by 0.5% and the Dow Jones Industrial Average had dropped around 0.6% by the time the European markets wrapped up.
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Dan Coatsworth, an investment analyst at AJ Bell, commented: "A cautious start to the day for European equities set the tone for Wall Street with US shares in the red as trading began across the pond. With Nvidia down more than 3%, investors were in a bad mood and they may not get out of the funk until we've seen US inflation figures on Wednesday."
Coatsworth concluded with a note on inflation expectations: "The central bank wants to see sustained evidence of inflation coming down and that doesn't appear to be on the menu." Mr Coatsworth has warned of potential "turbulence" in the markets this week, following the release of new economic data from the world's largest economy.
The pound has seen a slight increase, up around 0.15% against the US dollar at 1.2672 and 0.2% versus the euro at 1.1675. Brent crude oil prices have experienced a dip, falling by 0.5% to settle at 89.90 US dollars.
In corporate news, BP shares have climbed after the oil behemoth indicated it anticipates a rise in oil and gas production for the first quarter of the year. However, due to a quarter-on-quarter fall in oil and gas prices, BP is bracing for a financial impact, despite the uptick in shares which closed 1.3% higher.
Imperial Brands' stock took a hit even as the tobacco firm announced expectations of increased half-year profits, bolstered by hikes in tobacco pricing. The cigarette giant reported that tobacco sales have gone up in the US, Spain, and Australia, which largely compensates for the downturns in the UK and Germany, while it also pours investment into alternatives like e-cigarettes. Nevertheless, its shares ended the day 1.9% down.
Leading the FTSE 100 gainers were Fresnillo, climbing 22p to 578p, St James's Place, rising 12.8p to 441p, Antofagasta, jumping 54p to 2,269p, Croda, advancing 103p to 4,700p, and Halma, increasing 45p to 2,294p.
On the flip side, the biggest losers on the FTSE 100 included BAE Systems, dropping 60.5p to 1,277p, Rolls-Royce, declining 16.9p to 412.2p, Standard Chartered, falling 26.2p to 672.8p, Melrose Industries, decreasing 21.4p to 649.4p, and Beazley, slipping 21p to 654.5p.
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