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Britain's FTSE flat as Turkey crisis takes a breather

Tue, 14th Aug 2018 10:20

(For a live blog on European stocks, type LIVE/ in an Eikonnews window)

* FTSE 100 flat

* Antofagasta falls after trading update

* Esure rises towards buy-out offer

By Julien Ponthus

LONDON, Aug 14 (Reuters) - UK shares were flat on Tuesdaymorning as the Turkish lira pulled back from record lows,providing investors temporary respite in a currency crisis thathas rattled global markets since August 10.

The FTSE 100 opened up 0.3 percent but gave up mostof its gains after data showed Britain's wage growth had slowedeven though unemployment fell unexpectedly to its lowest since1975.

"Despite the resilience of the data, the inability of wagesto show any signs of pushing up from their current levels,continues to act as a significant imponderable", wrote MichaelHewson from CMC Markets.

"This is likely to make the calculus around another rise ininterest rates much more difficult", he added.

At 0847 GMT, the British blue chip index was flat (up 0.03percent), while the pan-European STOXX 600 rose 0.4 percent.

Shares in Antofagasta posted the worst performanceafter reporting first half core earnings fell 16.2 percentversus a year earlier.

The Chilean copper producer cited weaker ore quality andhigher costs and said trade tensions clouded the broader marketoutlook.

Goldman Sachs analysts called the numbers "a disappointingset of results" and said they expected Antofagasta tounderperform the market during the trading session.

London copper was falling for a third straight session afterdata showed the Chinese economy was cooling, suggesting demandfrom the world's top copper consumer could slow.

Anglo-Australian mining giant BHP was down 0.1percent after the union at the copper mine of Escondida inChile, called off a strike planned to start on Tuesday.

Other miners were trading in the red, including Fresnillo, down 1.5 percent, Rio Tinto and Glencore, both down 1 percent.

Oil major and heavyweight Royal Dutch Shell alsotook a few points from the FTSE 100 with a 0.3 percent loss.

Esure continued to rise towards the buy-out priceof 280 pence per share set in Bain Capital's 1.21 billion poundoffer.

The UK insurer was up 3.9 percent at 227.8 pence.

"The fact that the offer was all-cash also pleasedshareholders. And with shares trading around 277p this morning,investors appear to have almost completely bridged the gap",commented Artjom Hatsaturjants from Accendo Markets.(Julien Ponthus, Editing by William Maclean)

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