By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- The U.K.'s FTSE 100 index ended slightly
lower on Tuesday, as miners added pressure after iron-ore prices
declined, offsetting optimism over a growth upgrade from the
International Monetary Fund.
The benchmark index closed a bit lower at 6,834.26, after
swinging between small gains and losses earlier in the day.
The IMF lifted the economic growth forecast for the U.K. for
2014 to 2.4% from an earlier estimate of 1.9%, saying activity in
the country has been buoyed by easier credit conditions and
increased confidence.
The move wasn't, however, enough to send the FTSE 100 rallying,
with mining firms declining as iron-ore prices fell to their lowest
level in six months. The downturn was partly due to a retreat by
Chinese buyers in response to slowing domestic steel production and
rising stockpiles. Shares of Rio Tinto PLC (RIO) dropped 3.1%,
Anglo American PLC lost 2.7%, BHP Billiton PLC (BHP) fell 1.7% and
Glencore Xstrata PLC gave up 1.3%. Metals prices were mixed.
On a more upbeat note in London, shares of Unilever PLC (UL),
the maker of Dove soap and Axe deodorant, gained 1.8% after the
consumer-products company reported a rise in full-year
earnings.
"Unilever's results were refreshingly dull, doubly so in view of
the amount of second-guessing by analysts and investors over the
last couple of weeks. EPS came in 3% ahead of our forecast at
EUR1.58, and we can't see anything untoward in their composition,"
said James Edwardes Jones, an analyst at RBC Capital Markets, in a
note.
Melrose Industries PLC gained 0.6% after the investment company
said it will return GBP600 million to shareholders following recent
disposals of businesses.
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