Investors were concerned by the delta variation of Covid-19 and slightly softer China data, which weighed on mining companies, as the FTSE 100 was set to end a solid first half of the year and second quarter with losses. The London index UKX, -0.35 percent dropped 0.6 percent to 7,041.59, giving it a 0.3 percent gain in June and a 5.5 percent gain in the first half of the year. Stocks in the United Kingdom have been held back due of fears of a highly contagious delta version of COVID-19 disrupting preparations to completely restart the economy and causing travel problems.

According to new figures, the United Kingdom’s economy shrank by 1.6 percent in January to March, compared to an early estimate of a 1.5 percent decline. In a letter to clients, Sandra Horsfield, economist at Investec, noted that a “key influence on the evolution of GDP was the renewed national lockdown throughout most of Q1 and the attendant government measures.” Horsfield pointed to parts of the data that highlighted households’ limited spending power, such as consumption, which was revised down to -4.6 percent quarter-on-quarter from -3.9 percent, and the household saving ratio, which “jumped from 16.1 percent in Q4 to 19.9 percent in Q1 – the second highest quarterly reading since the series began in 1963,” she said. Banks and miners were driving the market down, with shares of HSBC HUKX, -0.38 percent HSBC, -0.12 percent down 1% and Barclays BARC, -1.06 percent BCS, -0.52 percent down 1.7 percent. Rio Tinto RIO, -0.41 percent RIO, -0.58 percent RIO, -0.41 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent RIO, -0.58 percent Dixons Carphones DC, +6.35 percent gained 6% among smaller firms after reporting a pretax profit for fiscal 2021 thanks to a significant increase in online sales. The electrical and telecoms equipment store claimed a robust performance and optimism about the future. In a note to clients, Russ Mould, investment director at AJ Bell, said, “Dixons could easily be a takeover target given it has a net cash position, it is generating lots of free cash flow, it boasts a strong brand in Curry’s, and strategically it has already done a lot of hard work to fix the problems of the past.” Cineworld CINE, -5.86 percent was among the stocks that fell, with shares of the movie theater operator down 5%./nRead More