LONDON MARKETS: FTSE 100 Slips, But Miners Find Relief After Selloff

By Carla Mozee, MarketWatch

Investors wait to hear from Fed chief Yellen

U.K. stocks ebbed lower Friday, set to round off the week with a loss, as investors waited for an update on U.K. economic growth and a closely watched speech from U.S. Federal Reserve Chairwoman Janet Yellen.

The FTSE 100 was down 0.2% at 6,802.00, with health care and consumer goods among the declining sectors. Miners were higher after being under pressure this week. The London benchmark was on track to fall 0.6% for the week, which would be a second straight weekly loss.

The index on Thursday lost 0.3% (http://www.marketwatch.com/story/ftse-100-struggles-as-miners-drug-makers-pull-lower-2016-08-25), weighed by those losses for miners and for drug makers.

But on Friday, BAE Systems PLC (BA.LN) topped the FTSE 100. Shares rose 1.2% as the defense company's rating was upgraded to buy from hold at Berenberg.

"We anticipate a material order book uplift, an improving cash profile in 2017 (with potential upside to guidance), and a secure progressive dividend across our forecast," wrote Berenberg analyst Charlotte Keyworth in a research note.

Economic docket: Friday's session will see the release of a second reading of Britain's gross domestic product for the second quarter. A confirmation of the preliminary print of 0.6% is expected.

Later in the day, investors will watch for hints on the future of U.S. interest rates from Yellen, who will address attendees at the central bank's summer summit in Jackson Hole, Wyo. She's slated to speak at 3 p.m. London time, or 10 a.m. Eastern Time.

Read:The 4 scenarios investors face ahead of Yellen's Jackson Hole speech (http://www.marketwatch.com/story/the-4-scenarios-investors-face-ahead-of-yellens-jackson-hole-speech-2016-08-25)

Ahead of the U.K. GDP release, the pound fetched $1.3217, up from $1.3175 late Thursday in New York.

Movers: Shares of Glencore PLC (GLEN.LN) rose 0.9% after two sessions of heavy declines, after the miner posted a half-year loss of $369 million (http://www.marketwatch.com/story/glencore-steps-up-debt-cuts-as-it-swings-to-loss-2016-08-24).

Other mining stocks rose as well, with Rio Tinto PLC (RIO) (RIO) (RIO) up 1.4% and Antofagasta PLC (ANTO.LN) higher by 1.2%.

But drug makers remained under pressure in the wake of backlash about drug pricing in the U.S. The furor was spurred by a substantial price hike for Mylan NV's (MYL) EpiPen, an emergency allergy treatment.

Read:How Hillary Clinton crushed another rally in biotech (http://www.marketwatch.com/story/how-hillary-clinton-crushed-another-rally-in-biotech-2016-08-24)

In London, Shire PLC (SHPG) (SHPG) fell 1.6%, AstraZeneca PLC (AZN.LN) (AZN.LN) was down 1%, and GlaxoSmithKline PLC (GSK.LN)(GSK.LN) lost 0.7%.

Hikma Pharmaceuticals PLC (HIK.LN) , however, picked up 0.4%.

(END) Dow Jones Newswires

August 26, 2016 04:16 ET (08:16 GMT)

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