# Miners drag London stocks lower; Unite Group slips
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-08-07
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Miners drag London stocks lower; FTSE 100 edges lower in
Meta Description: Read about how the UK's FTSE 100 index dipped as miners weighed down the market and Unite Group saw a rating downgrade, impacting the stock prices.
URL: https://financedigest.com/miners-drag-london-stocks-lower-unite-group-slipshtml

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By Shreyashi Sanyal

(Reuters) -The UK’s exporter-heavy FTSE 100 index dipped on Monday, weighed down by heavyweight miners, while shares of Unite Group fell to the bottom of the index after a rating downgrade.

The FTSE 100 index edged 0.2% lower in the first hour of trading, lagging its European counterpart the STOXX 600 index which rose. The [FTSE 100 logged a weekly](https://www.financedigest.com/ftse-100-hits-3-week-high-unfazed-by-latest-inflation-surge.html "FTSE 100 hits 3-week high, unfazed by latest inflation surge") loss on Friday, snapping a three-week winning streak.

Last week investors assessed a widely expected quarter percentage [point rate hike](https://www.financedigest.com/fed-officials-still-leaning-to-75-basis-point-rate-hike-in-july.html "Fed officials still leaning to 75-basis-point rate hike in July") from the Bank of England, data pointing to slowing business activity across Europe and a surprise U.S. credit [rating cut](https://www.financedigest.com/russias-2022-inflation-seen-at-13-4-more-rate-cuts-to-come-reuters-poll.html "Russia’s 2022 inflation seen at 13.4%, more rate cuts to come: Reuters poll").

The [industrial metals and mining sector](https://www.financedigest.com/construction-machinery-sector-is-primary-growth-factor-for-industrial-hydraulic-filters-market-unveils-fact-mr-2.html "Construction Machinery Sector Is Primary Growth Factor For Industrial Hydraulic Filters Market, Unveils Fact.MR") fell 1.0% on the day, tracking a decline in copper prices. \[MET/L\]

Mortgage lender Halifax said British house prices fell in July for a fourth month and the slide looks set to extend into 2024, but the market showed some signs of resilience despite a rise in [borrowing costs](https://www.financedigest.com/stocks-squeal-as-borrowing-costs-return-to-banking-crisis-highs.html "Stocks squeal as borrowing costs return to banking crisis highs").

LSL Property Services tumbled 13.5% after an annual [profit warning due](https://www.financedigest.com/wh-smith-warns-on-2022-profit-due-to-slow-travel-recovery.html "WH Smith warns on 2022 profit due to slow travel recovery") to subdued activity in the British mortgage market.

We’re still very much in this [period where markets](https://www.financedigest.com/atomic-spectroscopy-market-market-is-expected-to-show-the-highest-growth-rate-during-the-forecast-period-2022-to-2025.html "Atomic Spectroscopy Market market is expected to show the highest growth rate during the forecast period 2022 to 2025") have convinced themselves that there will be no landing,” said Russ Mould, investment director at AJ Bell.

“They’ve also convinced themselves that inflation is going to ease and continue to ease, and there is evidence to the contrary out there on both counts.”

Shares of students accommodation provider [Unite Group slipped](https://www.financedigest.com/world-shares-rally-as-china-offers-markets-a-hand.html "World shares rally as China offers markets a hand") 0.9% to the bottom of the FTSE 100 after RBC Capital Markets cut its rating to ‘sector perform’ from ‘outperform.

Bank [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") added 0.5% and were among the gainers on the day, with Natwest Group leading the advance on the FTSE 100.

The midcap FTSE 250 and the FTSE [small cap indexes](https://www.financedigest.com/small-business-distress-index-hits-mid-2020-high.html "Small business distress index hits mid-2020 high") were both flat.

[Investors now await](https://www.financedigest.com/asia-stocks-advance-as-investors-await-u-s-midterm-election-results.html "Asia stocks advance as investors await U.S. midterm election results") second-quarter UK GDP data due later in the week, along with inflation reading from the U.S. and China.

(Reporting by Shreyashi Sanyal and Siddarth S in Bengaluru; editing by Eileen Soreng)


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