FTSE 100's Flat Finish: Copper Miners' Slip Overshadows Positive Updates

The FTSE 100 ended flat as declining copper miner shares overshadowed positive corporate updates. Despite a record high session, it snapped a five-day winning streak. The midcap FTSE 250 also dipped. European markets reached record highs amid tariff threats. UK's budget deficit pressures remained evident.

The FTSE 100 index in London closed the day flat, with falling shares in major copper miners like Glencore and Rio Tinto casting a shadow over favorable corporate updates. Earlier in the day, the blue-chip index reached a record high before losing momentum to end slightly lower, breaking its five-day winning streak. Meanwhile, the midcap FTSE 250 pulled back slightly by 0.1% after achieving a two-week high.

The broader European markets reflected a bullish sentiment as the STOXX 600 index attained a new record high. This occurred despite fresh tariff threats from U.S. President Donald Trump, who suggested imposing duties on European and Chinese imports. Meanwhile, Britain's fiscal challenges came to light with a November budget deficit exceeding expectations, influenced by higher debt interest and a one-time military housing purchase.

Finance Minister Rachel Reeves, speaking at the World Economic Forum in Davos, indicated that the country's fiscal situation was under control. However, market pundits, like Russ Mould from AJ Bell, highlighted the challenge of addressing fiscal discipline while stimulating economic growth. Among the day's notable stock performances, EasyJet dropped 5% due to a weak revenue forecast, while Hochschild Mining plummeted 17% after lower gold production estimates. On the upside, wealth manager Quilter gained 2.1% following a notable rise in managed assets.

(With inputs from agencies.)