U.K. stocks finished the session lower on Friday, logging a drop for the month of November, its second in a row, as mining stocks fell on worries over China’s economy and investors looked ahead to the outcome of a key G-20 meeting between the U.S. and Chinese presidents.
The British pound slipped on the back of dollar strength and continuous worries over whether U.K. Prime Minister Theresa May’s Brexit deal will get approved by Parliament next month.
What are markets doing?
The FTSE 100 UKX, -0.83% stock index closed down 0.8% at 6,980.24, erasing Thursday’s gains. While the benchmark gained 0.4% on the week, it logged a 2.1% drop for the month of November, its second in a row, according to Dow Jones Market Data.
Sterling GBPUSD, -0.3597% last bought to $1.2745, compared with $1.2788 late Thursday in New York.
What is driving the market?
Ahead of the G-20 leaders summit this weekend, May promised a “good deal” for the global economy from the Brexit agreement, according to Sky News. The U.K.’s currency didn’t show itself too impressed with her statement, also struggling with a stronger dollar, and slipped on fears she faces an uphill battle with the deal next month.
Meanwhile, investors focused on stalling factory activity and weak construction data from China. U.K.-traded mining stocks are susceptible to any signs of a slowdown in the world’s second-largest economy, which is a big consumer of resource products.
Read: China’s manufacturing report highlights economic weakness just as G-20 gets rolling
On top of that, market participants focused on the G-20 meeting in Argentina, where President Donald Trump and Chinese Premier Xi Jinping are set to meet on Saturday.
Read: Watch out for December ‘risk liquidation’ if Trump/Xi meeting disappoints
What stocks are active?
Copper miner Antofagasta ANTO, -4.30% closed 4.3%, and Rio Tinto PLC RIO, -0.91% RIO, -1.66% ended 1.7% lower. BHP Group PLC BHP, -1.80% BHP, -1.92% closed 1.9% lower and Glencore PLC GLEN, -1.07% dropped to end the session 1.1% down.
Read: Oil slips back toward $50
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.