Britain's FTSE inches higher, Glencore takes a tumble

  • Reuters
  • Stock Market News
Britain's FTSE inches higher, Glencore takes a tumble
Credit: © Reuters.

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* FTSE 100 up 0.3 pct

* Glencore drops after U.S. subpoena

* IAG rises after price target increase

By Kit Rees

LONDON, July 3 (Reuters) - The UK's top share index climbed on Tuesday following a shaky start to the month, although mining giant Glencore GLEN.L fell after one of its subsidiaries received a U.S. subpoena.

The blue-chip FTSE 100 .FTSE index was up 0.3 percent at 7,571.59 points by 0855 GMT, making back some of Monday's 1.2 percent loss when concerns over global trade hit risky assets.

The mood was upbeat across the wider European equity trading landscape after German Chancellor Angela Merkel's conservatives settled a row over migration that threatened to topple her fragile governing coalition late on Monday evening. some (investors) remain nervous on the outlook for Brexit and the overall impact of U.S. policy but we see this as an opportunity to gain exposure as the recent drop was not a true reflection of equity asset prices," Atif Latif, director of trading at Guardian Stockbrokers, said.

On the FTSE, consumer staples, health stocks and financials added the most points to the index.

Shares in IAG ICAG.L were among the top gainers, up 2.3 percent on the back of a supportive research note from Credit Suisse (SIX: CSGN ) in which analysts raised their price target for the British Airways-owner, saying that they expect efficiency gains to drive up margins.

Miners, however, were a weak spot as Glencore GLEN.L dropped 12.2 percent to a one-year low. The miner said that a subsidiary had received a U.S. Department of Justice subpoena on compliance with money-laundering laws. news like this is clearly negative for the company, but the move lower is no doubt exacerbated by the timing of the news release, which was just after UK equities opened," Jordan Hiscott, chief trader at ayondo markets, said.

The broader FTSE 350 mining index .FTNMX1770 fell 3.2 percent. The sector has come under pressure from uncertainty over the United States' trade dispute with China, which has kept a lid on underlying copper prices.

The FTSE 100 has dipped back into negative territory for the year, down 1.5 percent year to date, though it has managed to slightly outperform a 2.1 percent decline for the Euro stoxx .STOXXE index.

British mid caps .FTMC rose 0.4 percent, helped by gains in industrials and consumer stocks.

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