By Muvija M
(Reuters) – UK shares tracked Asian markets lower on Thursday, as worries mounted over a prolonged economic fallout from the COVID-19 pandemic after the Federal Reserve struck a cautious tone about the U.S. economic recovery.
Minutes from the Fed’s July 28-29 policy meeting showed policymakers saw the rebound in employment seen in May and June already slowing with additional “substantial improvement” depending on the reopening of businesses.
They warned of a highly uncertain path for recovery from the global health crisis that has hammered economic growth across the world.
“(Fed) minutes are casting a shadow over markets and underline that any recovery is not going to be a straight line of advances,” Markets.com analyst Neil Wilson said.
On corporate news-driven moves, miner Antofagasta (L:ANTO) fell 5% after posting a plunge in half-year earnings, while InterContinental Hotels (L:IHG) gained 2.5% after a report that French rival Accor (PA:ACCP) had examined a merger with it.
Along with Antofagasta’s results, copper prices falling from a more than one-year high also hammered miners, with Glencore (L:GLEN), Anglo American (L:AAL), BHP (L:BHPB) and Rio Tinto (L:RIO) falling between 2% and 2.4%.
While the FTSE 100 has rebounded from a decade-low hit in March at the height of widespread lockdowns, it is still down 22% from a 2019 peak as concerns over a second wave of COVID-19 infections and the pace of economic recovery persist.
Frasers jumped 10% after it forecast growth of up to 30% in its new financial year, while AO World added 4.3%, inching closer to a six-year high, as it said demand for its products and services continued even after its rivals reopened stores in July.
Infrastructure group John Laing (L:JLG) plummeted 7% after saying it was unlikely to meet its investment target.
Source : https://uk.investing.com/