FTSE 100 Drops as Lockdowns Weigh on Mining Shares

Britain’s FTSE 100 fell on Wednesday, led by declines in mining shares as a surge in virus cases and movement curbs raised demand worries, while precious metals miner Fresnillo dropped after predicting lower gold output.

The blue-chip FTSE 100 index dropped 0.6% with miners and travel stocks falling the most, while the mid-cap index gained 0.1%.

British retailers dropped nearly 0.3% after reporting the biggest annual fall in prices since May this month, adding to signs of pressure on the sector.

The mood further dampened as Britain’s death toll from the coronavirus pandemic passed 100,000 people as the government battled to speed up vaccination delivery and keep variants of the virus at bay.

In company news, oil exploration company Tullow dropped 2.7% even after saying it expects its operating cash flow to reach $500 million in 2021 if the oil price stays above $50 a barrel.

Precious metal miner Fresnillo Plc fell 3.1% after forecasting lower gold output for the current year than COVID-hit 2020, mainly after a land slip at one of its mines in Mexico restricted operations.

(Reporting by Shashank Nayar in Bengaluru; Editing by Arun Koyyur)

Source: Reuters

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