FTSE 100 up, limited by losses among miners

Stocks in the U.K. inched higher Monday, but the benchmark FTSE 100’s gain was capped by losses in mining shares, after China’s gross domestic product highlighted the growth challenges facing a key market for commodity companies.

The FTSE 100 UKX, -0.17% rose 0.1% to 6,382.77, with only the basic materials sectors moving lower.

Miners lagged after government data showed China’s economic growth slowed to 6.9% in the third quarter, the first time growth in gross domestic product has come in below a rate of 7% since 2009. China is a major buyer of metals and related products.

Shares in precious metals producer Fresnillo PLC FRES, -2.90% fell 1.8%, as did those for Randgold Resources Ltd. RRS, -2.58% Anglo American PLC AAL, -4.33% gave up 1.6%, and BHP Billiton PLC BLT, -1.86%

While the Chinese reading was better than the 6.8% print expected in a Wall Street Journal poll of analysts, it did indicate China’s economy did not significantly strengthen even after a round of stimulus measures from Beijing.

The data are “of enormous importance to traders, especially since the [U.S. Federal Reserve] used China as a reason why it had failed to hike rates,” said Richard Perry, market analyst at Hantec Markets, in a note.

The GDP reading “is below the government’s 7% target for the year. However this does seem to broadly reflect the continued re-balancing of the Chinese economy towards a more sustainable consumer-led economy,” Perry said.

Elsewhere on the FTSE 100, ITV PLC ITV, -0.60% shares were flat after the broadcaster said it agreed to acquire UTV Ltd., which owns the television assets of Northern Ireland’s UTV Media PLC UTV, +4.18% (UTV.LN), for 100 million pounds ($154 million) in cash.

Shire PLC SHP, -1.73% SHPG, +1.74% shares fell 1.9%. The pharmaceutical company said the U.S. Food and Drug Administration has requested an additional clinical study in its new-drug application for lifitegrast, which is aimed at treating symptoms of dry eye disease.

“If the study is positive, we plan to refile our liftegrast submission in the first quarter of 2016, and will remain on track for the planned lifitegrast launch next year,” said Shire Chief Executive Flemming Ornskov in a statement.

Among the top performers on the blue-chip index were shares of financial services provider Old Mutual PLC OML, +0.24% and banking heavyweight Barclays PLC BARC, +0.76% BARC, +0.76% trading up 1.5% and 1.2%, respectively.

Source: MarketWatch