FTSE 100 Pares Early Gains; Miners Lose Ground

(RTTNews) - After a firm start and a subsequent bright spell in positive territory, the U.K. market's benchmark index FTSE 100 pared most of its gains and was up just marginally a little past noon on Thursday.

The market got off to a steady start amid fading concerns about a potential trade war after U.S. President Donald Trump's speech at the World Economic Forum in Davos, Switzerland.

Donald Trump dropped planned tariffs on eight European countries and ruled out using force to take Greenland.

"We probably won't get anything unless I decide to use excessive strength and force, where we would be, frankly, unstoppable. But I won't do that. Okay?" Trump said in his speech at the World Economic Froum in Davos, Switzerland on Wednesday.

Rather than using military force, Trump called for "immediate negotiations" with Denmark to "discuss the acquisition of Greenland by the United States."

NATO Secretary General Mark Rutte said he had a very productive meeting with Trump on the sidelines of the World Economic Forum in Davos on how NATO ?allies can ?work collectively to ensure Arctic ?security, including not just Greenland but the seven NATO nations with land in the Arctic.

The FTSE 100, which climbed to 10,226.84, gaining nearly 90 points in the process, was up just 20.10 points or 0.2% at 10,158.19 about a quarter past noon.

St. James's Place moved up 3.3%. Metlen Energy & Metals, Hiscox, IMI, Easyjet, Pershing Square Holdings, IAG, Intercontinental Hotels Group, Rentokil Initial and Vodafone Group gained 2 to 3%.

JD Sports Fashion, Polar Capital Technology Trust, Airtel Africa, 3i Group, Barclays, British American Tobacco, Convatec Group, Compass Group, Weir Group, Standard Chartered, HSBC Holdings, AstraZeneca Pharma, Melrose Industries, Spirax Group, Mondi and Scottish Mortgage climbed 1.4 to 2%.

Miners Fresnillo and Endeavour Mining lost 3.1% and 2.3%, respectively. Glencore eased by about 1.7%, while Rio Tinto and Antofagasta lost 1.4% and 1.25%, respectively.

ICG, Berkeley Group Holdings, United Utilities, Phoenix Group Holdings, BP, Burberry Group, Severn Trent, Aviva and Tesco were among the notable losers from other sectors.

In economic news, the UK budget deficit narrowed more than expected in December driven by the increase in tax receipts, data from the Office for National Statistics showed.

Public sector net borrowing decreased GBP 7.1 billion from the previous year to GBP 11.6 billion in December. This was below economists' forecast of GBP 13.4 billion.

While borrowing was the lowest for December in two years, it still represented the tenth highest December borrowing since records began in 1993.

Current receipts increased 8.9% to GBP 94.0 billion, while current expenditure rose only 3.5% to GBP 92.9 billion. Tax receipts increased by GBP 4.6 billion to GBP 70 billion on higher income tax receipts.

In the financial year to December, government borrowed GBP 140.4 billion, which was about GBP 300 million lower than in the same period of last year.

The Office for Budget Responsibility had projected borrowing to fall to GBP 138 billion in 2025-26, or 4.5% of GDP. It was estimated to reach GBP 67 billion or 1.9% of GDP in 2030-31.