By Pranav Kashyap (Reuters) - British equities started the week on a subdued note, with industrial metal miners dragging the index lower, while investors brace for the Federal Reserve's rate decision
FTSE 100 Stalls Near Record High as Metal Miners Weigh Down Index
(Reuters) -British equities started the week on a subdued note, with industrial metal miners dragging the index lower, while investors brace for the Federal Reserve's rate decision later in the week.
The benchmark FTSE 100 ended flat after hitting a record high on Friday.
Technology stocks were the decliners on the domestically-focussed midcap FTSE 250 that lost 0.7%, with Polar Capital Technology Trust and Allianz's technology investment trust down 6.8% and 5.2%, respectively.
A global rout in AI-linked stocks triggered by the overwhelming popularity of an inexpensive Chinese artificial intelligence model eased as the session progressed, with the STOXX 600 ending about flat, while the Nasdaq down about 3%. [.EU][.N]
Sterling continued its uptick after hitting a two-week high against the dollar on Friday. A stronger sterling hurts export-oriented firms.
The industrial metal miners sector hit a two-week low, dragged by a 6.2% drop in Anglo American after a report said BHP Group will not make a fresh bid for the miner. Weak copper prices further pressured the metal's miner. [MET/L]
Cigarette companies such as British American Tobacco and Imperial Brands rose 4.7% and 1.4% respectively after the U.S. President Donald Trump administration withdrew a plan to ban menthol cigarettes.
Morgan Stanley, on Monday, forecast UK's economic growth would be less than 1% this year, echoing the estimate of its Wall Street peers Goldman Sachs and JPMorgan, citing a slowdown in Britain's economy and signs of labour market weakness.
In a busy week for global central bank meetings, the Federal Reserve's first interest rate decision on Wednesday will be key, where the U.S. central bank is widely expected to hold its lending rate steady.
Markets will also keep a watch out for the December reading of the U.S. personal consumption expenditures which is due on Friday, a crucial metric in assessing the inflation trajectory.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala and David Evans)
