FTSE 100 stalls after three-day bounce as investors weigh earnings

Miners such as Rio Tinto, Glencore and Anglo American rose between 1.7% and 2.8% as most metal prices climbed on report that Chinese authorities were considering mobilising about 2 trillion yuan ($278.9 billion) to stabilise the slumping stock market. Investors parsed Christmas trading updates from retailers to see how consumers are faring.

The UK's blue-chip share index stalled on Tuesday after a three-day bounce, as investors assessed earnings reports and awaited economic data that could offer clarity on the Bank of England's (BoE) monetary easing plans.

The FTSE 100 index of top UK companies dipped 0.1% with losses in healthcare and consumer companies outpacing gains in miners. Miners such as Rio Tinto, Glencore and Anglo American rose between 1.7% and 2.8% as most metal prices climbed on report that Chinese authorities were considering mobilising about 2 trillion yuan ($278.9 billion) to stabilise the slumping stock market.

Investors parsed Christmas trading updates from retailers to see how consumers are faring. Shares of Premier Foods were flat after the food producer reported a 14.4% jump in third-quarter sales, helped by strong festive demand for its products. The stock touched a more-than-12-year high at market open.

Associated British Foods rose 1.5% after the retailer said it felt more confident of its Primark clothing business delivering an improved adjusted operating margin in the 2023/24 financial year. The unit posted slowing underlying sales growth in the Christmas quarter. "The volume numbers were a little bit less than expectations but they're catching up in terms of profitability from lower cost of goods," Ben Ritchie, head of developed markets equities at asset manager abrdn said about Primark's performance.

Ritchie added that the expensive luxury segment was likely to continue doing well. "It is the more mid-market (segment), from a retail perspective, that's going to face the bigger challenges." Investors await readings on UK business activity as well as consumer confidence later this week to gauge how the British economy is faring and the BoE's interest rate trajectory.

The FTSE 250 midcap index slipped 0.1% after a positive open. Crest Nicholson edged up 0.7% after the housebuilder reiterated its forecast of an encouraging calendar year despite a bigger-than-expected fall in its 2023 profit.