Stocks in the U.K. ended modestly lower in choppy trade Tuesday as mining shares slumped as the dollar strengthened to multiweek highs, dragging down commodities priced in the currency.
The FTSE 100 UKX, -0.25% lost 0.3% to finish at 6,820.79. Trading was closed Monday for a late-August bank holiday.
While a stronger U.S. economy should be supportive for global growth, the FTSE 100 on Tuesday was “held back by a strong dollar, with the fallers’ board looking like a who’s who of mining firms,” said IG market analyst Joshua Mahony in a note.
U.S. stocks closed slightly lower Tuesday as investors weighed additional comments from Federal Reserve members that emphasized the central bank’s intention to raise interest rates sooner rather than later.
The S&P 500 index SPX, -0.20% closed down 4.26 points, or 0.2%, at 2,176.12. Among the S&P 500’s 10 sectors, only the financial sector ended the day in positive territory, scoring a 0.8% gain on the prospect of higher interest rates. Utilities led the charge lower with a 1% decline.
The Dow Jones Industrial Average DJIA, -0.26% declined 48.69 points, or 0.3%, to close at 18,454.30. Shares of banks Goldman Sachs Group Inc. GS, +1.90% and J.P. Morgan Chase & Co. JPM, +0.82% led the index’s gainers, while shares of Boeing Co. BA, -1.57% topped blue-chip decliners.
Meanwhile, the Nasdaq Composite Index COMP, -0.18% shed 9.34 points, or 0.2%, to finish at 5,222.99. Overall trade remained subdued and rangebound.
Asian shares eased on Wednesday following modest losses on Wall Street, with investors awaiting U.S. jobs numbers for further signs the Federal Reserve may raise rates as soon as September.
The growing prospect for an imminent rate hike lifted the dollar against major currencies such as the yen.
Japan’s Nikkei stock index .N225 added 0.8 percent, poised to rise 1.7 percent for the month, boosted by a weaker yen after upbeat U.S. data lifted the dollar overnight. Sluggish domestic data that increased the prospect of further easing by the Bank of Japan also supported stocks.
Japanese industrial output was flat in July from June, data showed earlier on Wednesday, underscoring fragility in factory activity and falling short of economists’ median forecast for a 0.8 percent rise.