FTSE 100 Slips as China Growth Miss Weighs on Miners

Weak Chinese economic growth pressured mining shares, offsetting gains from Barratt Redrow and private markets specialist ICG.

Mark Rogers Mark Rogers

The FTSE 100 finished slightly lower on Wednesday as losses among heavyweight mining stocks outweighed strong performances from Barratt Redrow and ICG, with weaker-than-expected economic growth in China weighing on sentiment across the resources sector.

London’s leading index closed down 0.1%, while the FTSE 250 gained 0.2%, supported by advances in housebuilders and a rebound in Vistry following recent selling pressure.

Mining shares came under pressure after China’s National Bureau of Statistics reported that the world’s second-largest economy expanded by 4.3% year-on-year during the second quarter, slowing from 5.0% growth in the opening three months of the year.

The weaker figures hit companies exposed to demand from China, leaving Fresnillo down 3.0%, Anglo American 3.4% lower, Antofagasta off 2.6% and Endeavour Mining losing 2.5%.

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Among the strongest performers on the FTSE 100, ICG climbed 5.5% after reporting net additions to fee-earning assets of $2.4 billion. Gross additions reached $4.4 billion, comfortably ahead of the $3.0 billion forecast compiled by Visible Alpha, according to Jefferies, despite $2.0 billion of realisations during the period.

Barratt Redrow added 4.3% after announcing a £386 million share buyback alongside what it described as a solid finish to its 2026 financial year. Home completions reached the top end of guidance and the company said future capital returns would favour additional buybacks, a move that follows calls from shareholder Phoenix Asset Management Partners for a more aggressive repurchase programme.

On the FTSE 250, Vistry advanced 6.6% after chief executive Adam Daniels purchased 38,372 shares, signalling confidence following recent weakness in the housebuilder’s share price.

B&M European Value Retail was among the session’s biggest fallers, dropping 5.4% after reporting UK like-for-like sales growth that failed to meet market expectations.

Elsewhere in Europe, the CAC 40 in Paris ended 0.2% higher, while Germany’s DAX 40 slipped 0.6%.

US markets traded higher as investors welcomed another round of softer inflation data. The Dow Jones Industrial Average rose 0.3%, while the S&P 500 and Nasdaq Composite both gained around 0.2% to 0.3%.

Fresh figures from the US Labor Department showed producer prices fell 0.3% in June from the previous month, marking the first monthly decline since August 2025 as lower energy costs eased wholesale inflation.

Annual producer price inflation also slowed to 5.5% from a revised 6.0% in May, reinforcing optimism after consumer inflation data released a day earlier came in below expectations.