The FTSE 100 closed lower on Wednesday as a disappointing Chinese growth reading sent mining stocks sharply lower across London’s lead index.
The index finished down 13.47 points, or 0.1%, at 10,515.92, while the FTSE 250 edged up 55.56 points, or 0.2%, to close at 23,462.39.
China’s national bureau of statistics reported that gross domestic product expanded 4.3% year-on-year in the second quarter, slowing from 5.0% growth in the first quarter and missing the FXStreet-cited consensus forecast of 4.5%.
Quarter-on-quarter, GDP grew just 0.9%, which Jim Reid at Deutsche Bank noted marked the slowest pace of expansion in more than two years.
Dan Coatsworth, head of markets at AJ Bell (AJB.L), said the weak data has “spooked investors” in the mining sector, “causing a sell-off amid fears that the Asian superpower might scale back commodity purchases.”
Coatsworth added that “the data reading took the market by surprise and might stir speculation that the Chinese government will dig deeper with economic stimulus measures.”
Miners Fresnillo, Antofagasta, Anglo American and Endeavour Mining fell 3.0%, 2.6%, 3.4% and 2.5% respectively, ranking among the session’s most prominent fallers on the FTSE 100.
European equity markets were mixed, with the CAC 40 in Paris ending up 0.2%, buoyed by luxury goods stocks following strong results from Swiss group Richemont, while the DAX 40 in Frankfurt fell 0.6%.
Richemont, which owns Cartier and Montblanc, posted total sales of 6.33 billion euros for the three months ending June 30, up 17% from 5.41 billion euros a year earlier and beating market consensus of 5.88 billion euros.
JPMorgan analyst Chiara Battistini described the figures as “remarkably strong” with a 7% beat against JPMorgan’s sales estimate, with better delivery at all divisions.
In Paris, Gucci owner Kering rose 3.6%, while LVMH climbed 2.7% and Hermes 2.4%, with London-listed Burberry gaining 2.4% ahead of its quarterly update on Friday.
PayPal surged 18% in New York after Reuters reported it is the subject of a 53 billion US dollar takeover advance from payments processor Stripe and private equity firm Advent International.
Wall Street gained ground as producer price index data showed wholesale prices dropped 0.3% month-on-month in June, the first such contraction since August 2025, according to the US labour department.
On the FTSE 100, ICG led the risers, climbing 5.5% after reporting net additions to fee-earning assets of 2.4 billion dollars, with gross additions of 4.4 billion dollars beating Visible Alpha consensus of 3.0 billion dollars, according to analysts Jefferies.
Housebuilder Barratt Redrow rose 4.3% after announcing a £386 million share buyback and reporting a “solid” end to financial 2026 with home completions at the top end of guidance.
The move followed shareholder Phoenix Asset Management Partners urging the Leicestershire-based firm to pursue an “aggressive” share buyback programme, with the company confirming future buybacks as its preferred method of returning capital.
On the FTSE 250, Vistry rallied 6.6% after recent weakness, supported by chief executive Adam Daniels purchasing 38,372 shares in the company.
A report in the i Paper suggested incoming prime minister Andy Burnham will appoint Home Secretary Shabana Mahmood as the new Chancellor of the Exchequer, a move viewed as more market-friendly than appointing Ed Miliband, who may become foreign secretary instead.
Brent crude for September delivery edged lower to 83.71 dollars a barrel, despite ongoing tensions in the Middle East after the US renewed its naval blockade of Iranian ports and exchanged fresh strikes with Tehran over the Strait of Hormuz.
Thursday’s economic calendar includes eurozone trade data, UK GDP figures, US retail sales numbers, and a trading statement from Experian alongside half-year results from Ocado and SSE.