FTSE 100 movers: Mining millstone reverses, IHG and IAG jump

The FTSE 100 spiked in mid afternoon on Friday, rebounding on the back of the US jobs report, before promptly being yanked back into negative territory by the millstone of depressed mining stocks.

Falling metals and oil prices cast initial pressure on the natural resources sectors on the back of a surging dollar amid heightened expectations of a US rate hike when December comes around.

BHP Billiton was additionally hit by the tragic news of multiple deaths from a joint venture mine in Brazil. The major bursting of a tailings dam at a mine 50% owned by BHP in the Minais Gerais region is thought to have left at least 17 people dead and almost 50 missing in the resulting mudslides.

Sector-mate Glencore lost most of its share price gains from earlier in the week. Analysts remained cautious on the company despite its encouraging move to reduce its debt profile and impressive silver streaming deal.

Randgold, Anglo American and Fresnillo were also major fallers.

Jefferies sent National Grid shares down as it downgraded them to ‘hold’ from ‘buy’. It said that following the strong share price performance in recent months the shares were now at fair value.

Leading the risers, Intercontinental Hotels booked in some solid gains as rumours grew that the company was mulling the possibility of a sale or merger. Bloomberg cited people familiar with the matter as saying that IHG is in discussions with financial advisers about whether to sell itself or merge with a competitor as the sector consolidates.

In a note upgrading its outlook on European equities, UBS sounding an upbeat note about prospects for 2016 and 2017. The Swiss bank's analysts upgraded the construction sector to ‘overweight’ and said it should benefit from a pick-up in economic growth and is the second-most operationally geared sector, noting a particular preference for Irish building products supplier CRH.

IAG soared off its own upgrade, nudging its guidance higher for long-term profit margin, earnings and return-on-invested-capital guidance, also making several boardroom changes at British Airways. The airline group confirmed it was now targeting a return on invested capital in real terms of 15%, compared to 12% previously, and said it believed it can deliver an operating profit margin of 12% to 15% - previously the target compared to 10% to 14%.

Inmarsat was also on a flyer as it posted third quarter profits that were given a large boost thanks to its aviation division. Total revenue for the quarter was up 7.5% on 2014, driven by an $11.9m (£7.8m) increase in aviation revenues.

FTSE 100 - Risers

InterContinental Hotels Group (IHG) 2,755.00p 5.47%
CRH (CRH) 1,871.00p 4.18%
International Consolidated Airlines Group SA (CDI) (IAG) 599.50p 3.27%
Inmarsat (ISAT) 1,005.00p 3.24%
GKN (GKN) 296.90p 2.13%
Wolseley (WOS) 3,877.00p 2.00%
BAE Systems (BA.) 446.30p 1.92%
RSA Insurance Group (RSA) 436.90p 1.77%
HSBC Holdings (HSBA) 525.90p 1.74%
Bunzl (BNZL) 1,900.00p 1.66%

FTSE 100 - Fallers

BHP Billiton (BLT) 963.70p -6.80%
Glencore (GLEN) 113.55p -6.54%
Randgold Resources Ltd. (RRS) 3,942.00p -4.34%
Anglo American (AAL) 519.00p -2.92%
Fresnillo (FRES) 706.50p -2.82%
National Grid (NG.) 906.40p -2.25%
Pearson (PSON) 832.00p -1.83%
Capita (CPI) 1,274.00p -1.70%
SSE (SSE) 1,511.00p -1.50%
Hikma Pharmaceuticals (HIK) 2,018.00p -1.46%