Miners trap FTSE as European peers jump

London’s miners once again dragged the City’s main index down as its European peers forged ahead with strong showings on Thursday.

The FTSE 100 index ended the day nearly flat despite a buoyant mood elsewhere on the continent.

By the end of the day it had dropped 1.27 points, a 0.02% fall, reaching 7,627.95 points.

In Germany the Dax index closed up 1% while the Cac 40 in Paris rose 1.4%.

“It’s been another positive session for European equity markets, with the FTSE 100 once again lagging the wider market due to weakness in basic resources,” said CMC Markets analyst Michael Hewson.

“Anglo American and Antofagasta have followed Rio Tinto yesterday with disappointing first quarter production reports.

“A drought in northern Chile affected production at Antofagasta’s copper mine there, while gold production fell 35%.

“Anglo American raised its costs guidance, as well as cutting its production guidance for iron ore, platinum, and coal.”

It is the second day in a row that these companies have weighed on the FTSE index.

But on the opposite side the index saw strong performances from ITV and IAG, which owns British Air.

Mr Hewson said that IAG was up off the back of positive statements from two US airlines that they expect to return to profit this year.

“We’re also seeing decent gains from the likes of easyJet and Ryanair,” he said.

On Wall Street shortly after European markets closed the S&P 500 had gained 0.2% while the Dow Jones was up 0.4%.

On currency markets sterling had a strong showing.

By the end of the day in London a pound would set traders back 1.3041 dollars or 1.2032 euros, an increase of 0.08% and 0.12% respectively.

In company news, shares in retailer THG only rose 1.1% despite its boss revealing that there are companies that want to buy the business.

Matt Moulding said the firm he founded “has received indicative proposals from numerous parties in recent weeks”.

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But they were “unacceptable” because they did not value the company high enough.

The proposals were therefore rejected by the board.

Shares in Rank Group tanked 8.9% after the company behind Mecca Bingo said that it has cut earnings targets.

Fewer customers were visiting its sites last month, the business said, and the performance has continued into April.

Its chief executive put part of this down to pressures on consumers caused by the cost of living crisis.

The biggest risers on the FTSE 100 were ITV, up 4.72p to 77.28p, IAG, up 8.88p to 152.9p, Royal Mail, up 15.9p to 354.7p, Smith & Nephew, up 58p to 1,302.5p, and Melrose Industries, up 4.6p to 336.6p.

The biggest fallers on the FTSE 100 were Ocado, down 61p to 1,082p, Rio Tinto, down 292p to 5,850p, Glencore, down 17p to 518.9p, Antofagasta, down 51p to 1,636p, and Anglo American, down 120p to 4,035.5p.