London Market Report

  • Published

(Close): After a mixed day, the London market closed down, despite a strong showing by mining stocks.

At the end of trading the FTSE 100 index was down just 30 points, or 0.45%, at 6556.35.

Rio Tinto rose 2.7% after it maintained its iron ore production targets for this year, and added that copper output could be higher than forecast.

The news lifted other shares in the mining sector, with Fresnillo up 6% and BHP Billiton 1.36% higher.

Shares in Kingfisher rose 1.24% after the owner of the B&Q DIY chain was upgraded to a "neutral" rating by Nomura.

The market failed to be boosted by better-than-expected consumer inflation figures, with the CPI measure rising to 2.9% in June, below forecasts of 3%. However, separate data showed a sharp rise in input costs for manufacturers.

The inflation figures had weakened the pound at first, but sterling then recovered to stand up 0.12% against the dollar at $1.5119, although it was down 0.46% against the euro at 1.15080 euros