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UK shares sag despite rebound in mining sector

London - UK shares slipped early on Tuesday as a rebound for gold miners after a hammering in the previous session failed to offset a fairly mixed set of corporate results and lingering concern over commodity price falls.

Data released on Tuesday also showed UK public finances improved less than expected in June.

The FTSE 100 index was down 0.1% at 6 761.33 points at 10:28, broadly in line with pan-European equities.

 While receding fears around Greece have helped UK and European stocks rally in recent weeks, UK equities remain below their June peak.

Two top performers on Tuesday were gold miners Fresnillo and Randgold, up 1 to 2.5% after a slump in gold prices on Monday wiped out more than $8bn from the gold-mining sector's equity market capitalisation.

Gold prices on Tuesday stabilised just above a five-year low though some investors still see further price falls.

"The gold price has had a bit of a bounce...It's helping out the miners," said Mark Ward, head of execution trading at Sanlam Securities.

Corporate results were fairly mixed: IG Group shares fell 6% after reporting a hit to full-year earnings from the Swiss franc's fluctuations in January, while online domestic appliances retailer AO World jumped 9.7% after reporting a strong start to second-quarter trading.

The second-quarter earnings season is in its early days but already the majority of companies that have reported results in the United States and Europe have beaten earnings expectations, according to JPMorgan.

 

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Rand - Dollar
19.15
-0.7%
Rand - Pound
23.82
-0.6%
Rand - Euro
20.39
-0.5%
Rand - Aus dollar
12.30
-0.5%
Rand - Yen
0.12
-0.6%
Platinum
950.40
-0.3%
Palladium
1,028.50
-0.6%
Gold
2,378.37
+0.7%
Silver
28.25
+0.1%
Brent Crude
87.29
-3.1%
Top 40
67,190
+0.4%
All Share
73,271
+0.4%
Resource 10
63,297
-0.1%
Industrial 25
98,419
+0.6%
Financial 15
15,480
+0.6%
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