Thursday Morning Markets: FTSE Slips as Mining Stocks Decline; UK Economy Grows 0.4% in Q2

London’s blue-chips opened lower on Thursday, with the FTSE 100 down 0.3% and the FTSE 250 off 0.1%, even as European peers edged higher, with the DAX rising 0.3%, the CAC 40 gaining 0.1% and the Stoxx 50 adding 0.4%.

UK GDP data released this morning showed growth slowing to 0.4% in the second quarter from 0.6% in Q1, as higher energy costs tied to the Iran conflict weighed on activity, though resilience in services cushioned the blow.

Across the Atlantic, US CPI data published yesterday showed inflation easing to 3.4% annually in July, a mildly reassuring print that could keep the Federal Reserve on track to hold rates steady, though energy prices remain elevated.

The energy backdrop is reinforced by the ongoing US-Iran standoff over the Strait of Hormuz, which continues to inject volatility into oil markets.

Brent crude has fallen 1.1% to $88.07 and WTI has dropped 1.3% to $82.16 this morning, even as the conflict itself lingers as a tail risk. Spot gold slipped 0.8% to $4,374.

Mining stocks dominate the FTSE 100 fallers list so far this morning…

Antofagasta has tumbled following its half-year results, while Rio Tinto has declined 4.5% even after unveiling a long-term power deal securing its Tomago aluminium smelter.

Fresnillo (-4.3%), Endeavour Mining (-3.2%) and Anglo American (-3.0%) have all also dropped.

Bucking the trend, Aviva (+1.1%) and Spirax Group (+1.5%), rebounding after Tuesday’s results-driven decline, lead the risers, alongside Scottish Mortgage (+1.7%).

On the FTSE 250, Costain surged 5.9% on strong half-year results, while Rank Group is up 4.4% after reporting its full-year results. Savills has jumped 3.2% after a 47% rise in underlying profit, while Metro Bank has added 3.2%.

Losses were led by Hochschild Mining (-4.1%), GlobalData (-3.0%) and Greencoat UK Wind (-3.0%).