By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved lower in midday trade
on Thursday as initial optimism over dovish minutes from the
Federal Reserve was overshadowed by broader worries about the
eurozone.
The FTSE 100 index lost 0.5% to 6,446.45, on track for a third
straight day of losses.
The benchmark initially opened with sharp gains after Fed
minutes released Wednesday reaffirmed the U.S. central bank's
intention to be prudent in raising interest rates. U.S. stocks
scored their biggest one-day gains of the year in the wake of the
release, but futures pointed to a lower open on Thursday.
The broader European markets also started to trend lower midday,
as fears about the current weakness in Germany and the eurozone
overshadowed excitement with the Fed. The pan-European Stoxx Europe
600 index lost 0.3% to 326.87, down from trading as high as 331.59
earlier in the day.
In the U.K., focus was also on the Bank of England that left
interest at a record low of 0.5% and made no changes to its 375
billion ($607 billion) asset-purchase program.
At the BOE's September meeting, two members voted in favor of a
rate hike. Since then, however, U.K. inflation has slipped and
economic data have generally weakened, so most of the nine-member
Monetary Policy Committee are widely expected to have vote for no
change. The minutes from the October decision will be out on Oct.
22.
Among London market movers, miners posted some of the biggest
gains, as a weaker dollar helped drive commodity prices higher.
Shares of Randgold Resources Ltd. rallied 6.5%, Fresnillo PLC
gained 6.5%, and Antofagasta PLC put on 1.7%.
Shares of Rolls Royce Holdings PLC added 0.6% after Norwegian
Air Shuttle ASA ordered Trent 1000 engines for nine
Dreamliners.
Royal Mail PLC added 0.4%. The delivery company reached a
settlement agreement with the French competition authority over
allegations it had breached antitrust laws in the postal
market.
On a more downbeat note, banks posted losses with shares of
Barclays PLC (BCS) down 1.7%, HSBC Holdings PLC (HSBC) off 1.7% and
Royal Bank of Scotland Group PLC (RBS) 1.8% lower.
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