The biggest factor for the FTSE 100’s underperformance on Thursday morning relative to other European markets is a big decline in the mining sector.

Chilean miner Antofagasta is the biggest faller on London’s benchmark index, down 4.9% after it cut its guidance for future output.

Reuters reported:

The London-listed miner cut its 2026 copper output estimate to between 625,000 and 655,000 metric tons, from a previous forecast of 650,000 to 700,000 tons, due to a shutdown at its Los Pelambres mine in July after extreme rains prompted Chile’s government to declare a “state of catastrophe” in the Coquimbo Region.

While there has been no material impact on key equipment and infrastructure, the miner said it will need to repair some pipeline platforms and water management systems.

That appears to have pulled down the rest of London’s sizeable mining contingent with it. Rio Tinto was down 4.6%, Fresnillo dropped 4%, while Endeavour and Anglo American dropped 3.3% and 2.9% respectively.

Across Europe stock markets are mostly doing better than the FTSE 100 in London.

The pan-European Stoxx 600 gained 0.2%. Germany’s Dax index was up 0.4%, while France’s Cac 40 rose 0.2%. Italy’s FTSE MIB rose 0.5%.

Ladbrokes owners Entain said its revenues were up 5% after stronger-than-expected performance during the first half of the year – helped by the football World Cup.

The FTSE 100 bookmaker said that the number of first time depositors during this year’s World Cup was double those seen during the 2022 version.

Revenues, or customer losses, rose to £2.5bn during the first six months of the year.

Stella David, chief executive of Entain, said:

I am pleased with Entain’s start to 2026 with strong momentum and volume growth continuing as well as strong player engagement across the group throughout the World Cup tournament.

European stock markets have opened. The FTSE 100 in London has dipped marginally, down 0.1% in the first few minutes of trading.

Intercontinental Hotels Group is the biggest riser, up 1.8% after results earlier this week.

Betting company Entain is also up 1.4% after it reported a World Cup boost to its business.

Here is what recent UK economic performance looks like. There is something of a patttern of stronger starts to the year, followed by a weaker second half.

The UK economy has set an impressive pace in the first half of the year. If it continues, GDP would grow by 2% this year.

That would represent a strong year in recent terms (discounting the anomaly of the coronavirus pandemic).

Sanjay Raja, chief UK economist at Deutsche Bank, said:

The UK economy showed no signs of stopping over spring. After a thumping start to the year, UK GDP expanded by 0.4% q/q, taking the annualised growth rate in the first half of the year to a scorching 2%. And for a second straight quarter, it looks like the UK will take top place in the G7 league table. Yet again forecasters will be forced to revisit their forecasts with another marginal upgrade looking likely for the year (to 1.1%).

What happened in Q2-26? In short, households spent more than anticipated. Hotter weather saw consumers ramp up spending. The World Cup may have also had an effect in keeping June GDP on an upward trajectory with retail, hospitality, and advertising revenues all up on the month (June GDP was up 0.3% m/m). Businesses weren’t shy in investing either – despite the Middle East conflict.

Looking ahead, while the UK economy has been on a tear lately, some slowdown remains likely – reflecting recent patterns in GDP data (i.e. a strong start, followed by a weaker more subdued second half). Indeed, the energy crisis will likely catch up with households and business in Q3-26, as dual fuel bills rise. Elevated pump prices will also continue to squeeze on real disposable incomes.

The UK economy is estimated to be 1.2% bigger than it was a year ago.

Real GDP per person is estimated to have increased by 0.4% in the second quarter, up 1.0% compared with the same quarter a year ago.

These are the first UK GDP figures for Andy Burnham’s chancellor John Healey to respond to (although they do not cover the period in which he started in his new post). Healey said:

I know people are worried about the impact of the conflict in the Middle East on their cost of living, which has been too high for too long and it has added pressure on British businesses.

This is an active, hands-on government, putting British interests first – giving breathing space to those feeling the strain, making our country more resilient and bringing hope back.

We’ve seen the fastest growth in the G7 this year, but we now need to double down and drive growth in every postcode.

The US-Israeli war on Iran has been perhaps the dominant global economic narrative of 2026, but the effects on the UK economy still appear unclear, said the ONS.

We know that higher oil prices have immediately fed through to higher inflation, but there has so far been limited evidence of what Bank of England governor Andrew Bailey has termed “second-order effects” of price pressures spreading through the UK economy.

Businesses are definitely alert to the threat from the conflict, which started at the end of February. However, the ONS put the war in the basket of “difficult to quantify their exact impact”.

The ONS said

The conflict in Iran, which started at the end of February, has been referred to by various businesses in terms of June 2026 data. These comments were cited in some manufacturing industries, wholesale, land transport services, warehousing and travel agencies. However, it should be noted that fewer comments to the survey referring to the Iran war were provided in June 2026 compared with previous months, which coincided with a period of ceasefire.

This downward trend was also cited in our Business Insights and impact of the UK economy: 2 July 2026 bulletin. In June 2026, 31% of businesses with 10 or more employees reported concern about international conflict affecting supply chains over the next year; this was a continued fall from the recent peak this April (38%).