FTSE 100 slips as Antofagasta downgrade sparks miner sell‑off and oil eases

FTSE 100 opened Thursday lower as the mining sector dragged the benchmark down. Antofagasta slumped almost five per cent after it announced a production shortfall and trimmed its full‑year outlook, prompting a sell‑off across related stocks.

Mining slump drags the index

Shares of Rio Tinto fell more than four per cent, while Fresnillo lost about three per cent, extending the downward pressure on the blue‑chip index. The move highlights how quickly a single miner’s guidance can ripple through the market.

“Miners were in retreat in London after Antofagasta’s latest update saw a material downgrade to its production outlook, a sharp reminder of the operational setbacks which are a fact of life in the mining sector,” said Russ Mould, investment director at AJ Bell.

Broader economic backdrop

At the same time, the Office for National Statistics reported that the UK economy grew only 0.4 per cent in the second quarter, a slowdown that follows a flat May. Treasury officials have warned the Prime Minister that continued disruption to the Strait of Hormuz, linked to the Iran conflict, could keep growth muted through 2027.

Oil markets reflected the geopolitical chatter, with oil prices easing slightly this morning despite a recent alert from the global energy watchdog about rapidly depleting stockpiles.

Looking ahead, market participants will watch upcoming earnings from other miners and any fresh data on UK growth. Continued pressure on commodity prices or further geopolitical tension could keep the FTSE 100 on the back foot, while a rebound in production forecasts may offer a short‑term lift.