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Mining Stocks Weigh Down FTSE 100; UK Economy Grows in Q2

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London's FTSE 100 closed in the red for the fourth consecutive session on Thursday, falling 0.69%, as losses in mining and energy stocks outweighed stronger-than-expected UK economic data.

The UK's economy grew 0.4% in the second quarter, in line with expectations, following 0.6% growth in the previous quarter, preliminary data from the Office for National Statistics showed. GDP also rose 0.3% in June from May, beating expectations for no growth.

Berenberg said the data showed the UK economy had held up better than expected despite higher energy prices and mortgage rates. "We still expect quarter-over-quarter growth to slow in H2 as changing seasonal patterns exert their drags and the weakness of the labour market weighs on household incomes. However, the gain in GDP in June and the possibility of a sustained tailwind from AI infrastructure investment skews the risks towards a better outcome," the research firm added, maintaining its view that the Bank of England could resume cutting interest rates by the end of 2026.

In corporate news, miner Antofagasta (ANTO.L) slumped 6.08% to become the biggest faller on the blue-chip index after cutting its 2026 copper production guidance to between 625,000 tonnes and 655,000 tonnes, from 650,000 tonnes to 700,000 tonnes.

"We had expected a guidance downgrade at the Q3 results, as company on course for [650,000 tonnes], but essentially the impact of the storms taking c.10-15kt of production out. Antofagasta appears to have been the most heavily impacted of the miners so far, with Lundin maintaining guidance," RBC Capital Markets said, while BofA Global Research trimmed the stock's price target to 46 pounds sterling from 47 pounds.

Rio Tinto Group (RIO.L), down 4.77%, said its aluminum smelter joint venture with Gove Aluminium Finance and Norsk Hydro pledged AU$1.1 billion through 2038 under a new agreement with the governments of Australia and the state of New South Wales. Tomago Aluminium's total commitment includes AU$100 million for decarbonization of Australia's largest aluminum smelter.

Meanwhile, sports betting and gambling company Entain (ENT.L) declined 2.96% after its interim loss after tax narrowed year over year to 11.4 million pounds from 85.8 million pounds, while revenue increased to 2.51 billion pounds from 2.34 billion pounds.

On the geopolitical front, Pakistan's foreign ministry said wider peace talks between the US and Iran had reached an impasse. Deutsche Bank Research also said Iran was carrying out a military overhaul as part of an "offensive doctrine," citing a Revolutionary Guard general.

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