By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- BG Group PLC led U.K. stocks lower on
Monday after a downbeat production forecast, while mining firms
helped curb losses for the benchmark index after the release of
encouraging Chinese data.
The FTSE 100 index lost 0.3% to close at 6,530.74, breaking a
three-session winning streak.
Adding pressure on the index, shares of BG Group PLC slumped
5.1% after the energy firm warned production will fall below
previous expectations in 2014 due to unrest in Egypt, a production
delay in Norway and lower volumes from the U.S.
Other energy firms were also on the decline, tracking oil prices
lower. Royal Dutch Shell PLC (RDSB) dropped 0.8% and BP PLC (BP)
gave up 0.3%.
Among other notable decliners, shares of Tate & Lyle PLC
gave up 3.4% after UBS cut the ingredient firm to sell from
neutral, with the analysts saying the current valuation is too
high.
"It does not adequately reflect the risk that sucralose prices
continue to decline as 'generic' competitors improve product
quality and access greater scale," they said.
Shares of GlaxoSmithKline PLC (GSK) erased 0.7% after the drug
maker said it's selling its Lucozade and Ribena drinks brands to
Tokyo's Suntory Beverage & Food Ltd. for 1.35 billion pounds
($2.11 billion).
On a more upbeat note, mining firms were on the rise, supported
by solid data from China. The country is a major user of natural
resources, and any hints the economy is stabilizing or expanding
tend to support commodity firms.
Chinese trade data out over the weekend showed a pickup in
exports in August, providing further evidence that the world's
second-largest economy is recovering from a slowdown earlier in the
year. In addition, data out on Monday showed inflation remain
subdued, with the consumer-price index rising 2.6% on year in
August.
Shares of Glencore Xstrata PLC (GLCNF) added 0.9%, Rio Tinto PLC
(RIO) gained 1.1% and Anglo American PLC put on 0.9%.
Metals prices were mixed.
Luxury-retailer Burberry Group PLC (BURBY) gained 2.2% to 16.35
pounds ($25.70) after HSBC lifted the price target on the firm to
GBP19 a share from GBP17.50 and added the company to its "Europe
Super Ten" list.
Shares of British American Tobacco PLC (BTI) put on 0.6% after
Bank of America Merrill Lynch upgraded the tobacco firm to buy from
neutral.
Also in the news in London, Chancellor of the Exchequer George
Osborne said in a speech on Monday that the U.K. economy is
"turning the corner," partly attributing the improving economic
environment to the effect of the government's austerity
program.
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