London Markets: FTSE 100 wobbles as banks drop, miners rise

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) ? U.K.?s FTSE 100 index was little changed on Tuesday, as banks declined after recent gains, while mining firms were mostly stronger after an upbeat production update from Rio Tinto PLC.

The benchmark /quotes/zigman/3173262 UK:UKX -0.03% ?was marginally higher at 6,586.01, after closing at the highest level since late May on Monday.

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Shares of Rio Tinto /quotes/zigman/155899 UK:RIO +3.22% ? /quotes/zigman/182541/quotes/nls/rio RIO +0.28% ? /quotes/zigman/176317 AU:RIO +1.37% ?climbed 2.2% after the heavyweight miner posted record output of iron ore in the second quarter and said its recovery from a landslide at a major copper mine in the U.S. is faster than expected.

Other miners tracked Rio Tinto higher, with BHP Billiton PLC /quotes/zigman/184879 UK:BLT +1.91% ? /quotes/zigman/270355/quotes/nls/bhp BHP +0.33% ? /quotes/zigman/180893 AU:BHP +0.54% ?up 0.9%, Antofagasta PLC /quotes/zigman/139152 UK:ANTO +0.55% ?0.6% higher and Anglo American PLC /quotes/zigman/470624 UK:AAL +1.42% ?rising 0.6%.

The gains for the mining sector weren?t, however, enough to push the broader U.K. index firmly into positive territory. Banks declined after recent gains and added pressure on the broader index. Standard Chartered PLC /quotes/zigman/22532 UK:STAN -2.68% ?lost 1.5%, Lloyds Banking Group PLC /quotes/zigman/126322 UK:LLOY -0.27% ? /quotes/zigman/255656/quotes/nls/lyg LYG +2.93% ?fell 0.7% and HSBC Holdings PLC /quotes/zigman/13843 UK:HSBA -0.15% ? /quotes/zigman/207333/quotes/nls/hbc HBC +0.71% ? /quotes/zigman/13834 HK:5 -0.06% ?shed 0.5%.

Banks drop in London on Tuesday.

On the data front in the U.K., the Office for National Statistics said inflation rose to 2.9% in June from 2.7% in May, but below estimates of a 3% reading.

?There are growing signs of the U.K. recovery gaining momentum, with the economy set for strong growth in the second quarter and companies reporting the brightest outlook for the year ahead since the financial crisis struck, but inflation clearly remains the UK?s bugbear and calls into question just how long this strong growth can persist for,? said Chris Williamson, chief economist at Markit, in a note.

?High prices look set to continue to erode spending power, curbing the overall pace of economic growth,? he added.

/quotes/zigman/3173262

UK : FTSE Indices

Volume: 0.00

July 16, 2013 12:23p

/quotes/zigman/155899

UK : U.K.: London

Volume: 2.24M

July 16, 2013 12:23p

Market Cap

?39.53 billion

Rev. per Employee

?451,624

/quotes/zigman/182541/quotes/nls/rio

US : U.S.: NYSE

Volume: 2.14M

July 15, 2013 4:05p

Rev. per Employee

$716,974

/quotes/zigman/176317

AU : Australia: Sydney

Volume: 1.78M

July 16, 2013 5:04p

Rev. per Employee

$691,334

/quotes/zigman/184879

UK : U.K.: London

Volume: 3.46M

July 16, 2013 12:23p

Market Cap

?38.02 billion

Rev. per Employee

?911,375

/quotes/zigman/270355/quotes/nls/bhp

US : U.S.: NYSE

Volume: 1.02M

July 15, 2013 4:00p

/quotes/zigman/180893

AU : Australia: Sydney

Volume: 4.17M

July 16, 2013 5:04p

Market Cap

$106.98 billion

/quotes/zigman/139152

UK : U.K.: London

Volume: 732,553

July 16, 2013 12:22p

Rev. per Employee

?754,574

/quotes/zigman/470624

UK : U.K.: London

Volume: 1.79M

July 16, 2013 12:22p

Market Cap

?18.04 billion

Rev. per Employee

?171,231

/quotes/zigman/22532

UK : U.K.: London

Volume: 3.09M

July 16, 2013 12:23p

Market Cap

?37.07 billion

Rev. per Employee

?187,578

/quotes/zigman/126322

UK : U.K.: London

Volume: 67.72M

July 16, 2013 12:23p

Market Cap

?48.37 billion

Rev. per Employee

?482,111

/quotes/zigman/255656/quotes/nls/lyg

US : U.S.: NYSE

Volume: 2.89M

July 15, 2013 4:07p

Rev. per Employee

$767,916

/quotes/zigman/13843

UK : U.K.: London

Volume: 8.88M

July 16, 2013 12:23p

Market Cap

?134.80 billion

Rev. per Employee

?204,167

/quotes/zigman/207333/quotes/nls/hbc

US : U.S.: NYSE

Volume: 516,602

July 15, 2013 4:05p

Market Cap

$203.78 billion

Rev. per Employee

$320,506

/quotes/zigman/13834

HK : Hong Kong

Volume: 8.29M

July 16, 2013 4:01p

Market Cap

HK$1580.99 billion

Rev. per Employee

HK$2.50M

Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

Source: http://www.marketwatch.com/news/story.asp?guid=%7B491747F2-EDED-11E2-922F-002128040CF6%7D&siteid=rss

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