By Barbara Kollmeyer
MADRID (MarketWatch) -- Britain's benchmark stock index fell in
a choppy trading session Thursday, dragged to a lower close as
miners came under pressure in response to gold's retreat from
record highs.
The FTSE 100 index fell 0.3%, or 19.26 points, to close at
5,662.13.
Gold futures pushed further into record territory in early
action, with the December contract touching $1.366 an ounce at one
point Thursday, but then turned south.
Shares of miner Kazakhmys PLC dropped 5.6%, and Antofagasta PLC
fell 4.9%.
As expected, the Bank of England said it would maintain its
lending rate at a record-low 0.5% and keep its asset-purchase
program unchanged as well.
London investors also digested British economic reports.
The Halifax House Price Index showed prices fell 3.6% in
September, the biggest monthly drop since records began in 1983.
Other data showed industrial production rose 0.3% in August, up
4.2% on an annual basis, in line with expectations.
On the positive side, shares of hedge-fund manager Man Group
jumped 5.1%, posting one of the biggest gains in the FTSE 100.
Shares of Marks & Spencer Group PLC rallied 4.9% after the
retailer reported an increase in second-quarter sales, even as it
warned that trading conditions are worsening and costs are
rising.
Shares of smaller-cap retailer Mulberry Group rose 10.8% after
the company said sales and profit for the year ending March 31
would come in well ahead of expectations. It said business during
the Christmas trading period, though, would be crucial.
Meanwhile, recruitment groups Hays PLC and Michael Page
International PLC updated investors on trading and conditions.
Shares of Hays fell 2%. The company reported a 21% gain in net
fees in the fiscal first quarter, driven by a big rise in the
Asia-Pacific region.
Michael Page shares dropped 3.1%. Gross profit for the third
quarter rose 37%, the company said, with permanent recruitment
activity up and temporary activity also showing growth for the
first time this year.