StockMarketWire.com - The FTSE 100 continued to decline, falling 0.7% to 6,893 after UK inflation rose higher than expected and shares in airline stocks fell.

West Texas Intermediate (WTI) crude oil advanced 1.1% to $46.26 and Brent crude oil nudged 1% to $48.82 per barrel, respectively.

Gold was up 0.4% to $1,345 per ounce and copper gained 0.5% to $4,762 per tonne.

MAIN NEWS OF THE DAY

Reports of hints in Russia that OPEC is working on a deal to freeze oil production boosted commodity stocks, with Rio Tinto (RIO), Randgold Resources (RRS), Anglo American (AAL) and BHP Billiton (BLT) trading higher by up to 2.1%.

Conversely airlines fell as the market priced in higher fuel costs.

The Consumer Price Index (CPI) in the US rose by 0.1% in July after a 0.2% increase in June, according to the US Bureau of Labor Statistics.

The US Federal Reserve said US industrial production increased by 0.7% in July after moving up 0.4% in June. It was the largest advance for the index since November 2014.

UK inflation came in higher than expected at 0.6% in July. The Office for National Statistics said the PPI measure of inflation rose to 3.3% in July, significantly ahead of the expected 1%.

BLUE CHIP RISERS AND FALLERS

Miner Antofagasta (ANTO) gained 8.6% to 558.5p on earnings before interest, tax, depreciation and amortisation (EBITDA) rising to $571.6 million, as investors welcomed cost-cutting.

MID CAP RISERS AND FALLERS

Cairn Energy (CNE) became one of the biggest risers on the London Stock Exchange after reducing its loss after tax from $230 million to $38 million in the first half of the year.

Hothschild Mining (HOC) impressed the market by announcing a dividend after returning to profit in the six months to 30 June, driven by strong production performance and cost controls. Shares were up 6.6% to 313.7p.

Piping systems manufacturer Polypipe (PLP) delivered further good news for dividend hunters after hiking its dividend by more than a third to 3.1p, following a 29% increase in pre-tax profit. However, shares slumped by 3% after an initial rise.

Investors focused on BGEO's (BGEO) lower net interest margin instead of its profit increase of 47.6% year-on-year, causing shares to slump 5.8%.

SMALL CAP RISERS AND FALLERS

Cambridge Cognition (COG) demonstrated that consumer grade wearables can be used to accurately measure clinically relevant cognitive performance using its Cognition Kit software from a technology feasibility study. Investors toasted the results causing shares to shoot up 29.6% to 52.5p.

CDialogues (CDOG) is to delist from AIM, sell its main business and return funds to shareholders. It moved 26.7% higher to 47.5p on the news.

Gulf Marine Services (GMS) received a notice of early termination for a mid-size class SESV supporting well services from a national oil company in the MENA region.

W Resources (WRES) jumped 22.6% after ICD Alloys and Metals provided a forward sale contract facility for 1.2 million, with $200,000 of this facility already paid to W Resources.

Automotive retail and leasing group Marshall Motor (MMH) sped 4.9% higher to 159p on half-year results driven by like-for-like improvements and contributions from recent acquisitions.

Armadale (ACP) said geological mapping conducted at the high grade Mahenge Liandu graphite project in south-east Tanzania confirmed extensive areas of graphite mineralisation.

PureTech Health (PRTC) said the US Patent and Trademark Office issued a patent, which is licensed worldwide to Vedanta under an agreement with the University of Tokyo, boosting shares by 4.9%.


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