Market report: Miner Glencore weighs on FTSE 100

Glencore shares were put under renewed pressure after production woes forced the mining behemoth to cut its 2019 production targets for copper, oil, ferrochrome and nickel.

The miner revealed that its first-quarter output had been battered by numerous issues, including “severe flooding” in Australia, and warned that its copper output is expected to be 3pc lower after safety and smelter outages at a mine in Zambia.

The company’s first-quarter production was “very weak” and the cut in guidance is equivalent to around $430m (£330m) in sales at spot commodity prices, said RBC Capital Markets. Glencore’s shares slid 8.2p to 304.4p to hit a seven-week low, extending a decline triggered last week by US regulators opening a new corruption inquiry into the miner.

It led the metals sector lower as its FTSE 100 rivals were weakened by the recovery in Chinese factories faltering. Caixin’s manufacturing purchasing managers’ index (PMI) pulled back for the first time in three months, pointing to stagnation in the struggling sector. Copper specialist Antofagasta dropped 23.2p to 908p and Rio Tintoedged 43.5p lower to £44.65. The wider FTSE 100lagged on European markets, held back by its miners and a strong rise in the pound. The index shed 22.44 points to close at 7,418.22.