By Preeti Upadhyaya, MarketWatch
LONDON (MarketWatch) -- Better-than-expected U.K. unemployment
data failed to boost the country's benchmark stock index on
Wednesday, as losses for heavyweight miners added pressure,
tracking most metals prices lower.
The FTSE 100 dropped 0.5% to close at 5,833.04, after closing at
its highest level since April 2 on Tuesday.
The index shortly trimmed losses in morning trade, after the
Office for National Statistics reported that the unemployment rate
was 8% for the three months to June 2012, down 0.2 percentage
points over the quarter. .
Meanwhile in the U.K., minutes released by the Bank of England
showed that the central bank voted 9-0 to leave key interest rates
unchanged in August.
In the U.S. data released by the Department of Labor on
Wednesday showed that consumer prices remained the same in July,
while the Empire State Manufacturing index dropped sharply in
August. and
Mining firms led the downward trend, with Eurasian Natural
Resources Corp. PLC falling 8.5% after releasing results for the
first half of the year in which revenue fell 19% and underlying
earnings before interest, taxes, dividends and amortization dropped
41%.
Chief Executive Felix Vulis said, "ENRC has shown a resilient
performance in the first half of 2012, a period characterized by
deepening economic uncertainty and declining prices for our key
products. In light of these market conditions we have concentrated
on controlling our costs and enhancing productivity."
Rio Tinto PLC (RIO) eased 3.4% and Anglo American PLC slipped
2.9% while BHP Billiton PLC (BHP) was off 2.3%.
Metals prices were mostly lower.
JJB Sports PLC plunged 23.7% after Dick's Sporting Goods (DKS)
said in an earnings statement Tuesday that it would write off its
$32.4 million stake in the U.K. sporting goods company.
Tobacco companies also added pressure after an Australian law
was passed banning almost all branding from cigarette
packaging.
Imperial Tobacco Group PLC fell 1.7% and British American
Tobacco PLC (BTI) was down 0.7%.
Vodafone PLC (VOD) slipped 1% after Bank of America Merrill
Lynch downgraded the telecommunications firm to neutral from
buy.
Moving in the other direction, life insurance firm Resolution
Ltd. was up 2.9% after releasing results for the first half of the
year. The company announced it would be "simplifying the governance
structure" and raised interim dividends by 5%.
Standard Chartered PLC was up 4.1% after it announced late
Tuesday that it would pay $340 million to settle with New York's
Department of Financial Services.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires