FTSE 100 closed in the red on Tuesday, with big cap miners dragging the UK's top tier index lower.
Footsie closed out down around 13 points at 7,755, while the FTSE 250 gained ground - up over 44 points to 20,877.
Top laggard was silver titan Fresnillo plc (LON:FRES), which lost 3.47% to 1,378.50p, while copper titan Rio Tinto (LON:RIO) lost 3.02% to 4,046p.
It came as the gold price shed 0.40% at US$1,333.85 an ounce as it was hit by the rally in the US dollar.
Top of the Footsie pile was specialty chemicals firm Johnson Matthey plc (LON:JMAT), which gained 2.84% to 3,300p after gaining yesterday after a Berenberg upgrade.
David Madden, at CMC Markets, said: "The FTSE 100 is being held back by the commodity related companies, as the rest of Europe has a strong session.
"The London equity benchmark has a relatively high exposure to the commodities markets, and the decline in BP, Rio Tinto, Glencore and BHP Billiton are keeping the index in the red."
The FTSE 100 was still on the back foot as it advanced towards Tuesdays close, with the blue-chip benchmark's dollar-earning international stocks lower.
It comes as pound sentiment was boosted by slightly better than expected inflation statistics earlier today.
Standing at 7,747, the FTSE 100 was down 21 points or 0.28%.
In New York, meanwhile, the Dow Jones shot up 251 points, almost 1%, reaching a new record high above 26,055.
The S&P 500 was also moving higher, up 0.7% to 2,803, while the Nasdaq Composite gained 40 points or 0.54% to 7,300.
GKN Plc (LON:GKN) remained one of London's most traded stocks on Tuesday, along with the FTSE 100 natural resource stocks.
The engineering firm's shares were up 1.5%, changing hands at 444.1p, as traders continue to speculate around the possibility of a transaction with Melrose Industries Plc (LON:MRO).
Rio Tinto Plc (LON:RIO), BHP Billiton plc (LON:BLT), and Anglo American Plc (LON:AAL) were all well traded, and all were down - each losing between 2.5% and 2.8%.
Glencore Plc (LON:GLEN) was down 1.99% at 401.39p.
BP Plc (LON:BP), meanwhile, which was down 2.46% trading at 519.5p after the latest oil spill payment update.
Alcohol drinks group Diageo plc (LON:DGE) was also among the most exchanged shares, it was down 0.7% at 2,601p.
Provident Financial Plc (LON:PFG), meanwhile, was down more than 8% changing hands at 843.2p as the lender's latest trading update revealed further struggles.
London's FTSE 100 stayed lower into the afternoon, despite Wall Street pointing to a positive start following the long holiday weekend in New York.
The blue-chip benchmark was 14 points, 0.18% lower at 7,755.
Following this morning's inflation stats, the pound has remained in focus.
Wall Street equities are set to make a positive start as trading resumes following the long weekend, with the Dow Jones indicated more than 200 points higher ahead of Tuesday's open.
The S&P 500 and Nasdaq are also pointing higher.
Equities are supported by strong results in the banking sector, with Citigroup revealing expectation topping financials - revenue was reported at US$17.25bn and earnings per share came in at US$1.28 versus consensus for US$1.19.
The bank also reported US$19bn charge, tied to the changes to the US tax codes.
By lunch, the FTSE 100 had turned into negative territory changing hands at 7,758, down 10 points or 0.14%.
Attentions have largely fixated on the UK inflation statistics, with share trading steered by moves in the pound.
City Index analyst Ken Odeluga described the sentiment toward sterling as "sanguine", noting the palpable relief that some economic volatility appeared to have been abated.
"The FTSE 100/sterling inverse correlation underpinned the benchmark index for a time before it eased on Tuesday," Odeluga said.
"However, slim evidence of broader equity market support came from the FTSE 250.
"This remained positive despite questions over the eventual impact of Carillion's collapse on a clutch of industry peers. Some of these have disclosed impairments following partnerships with the insolvent infrastructure group."
Bitcoin and cryptocurrency markets continue to be hammered in trading, amid fears that a regulatory clampdown will burst the bubble.
Indeed, with Bitcoin shedding another 14.5%, down at US$11,610, the leading cryptocurrency has lost about 40% of its market value since the dizzy heights seen in December.
Perhaps more acutely, investors have now seen nearly US$4,000 come off the price of one Bitcoin in a week.
At the same time, Ripple - the 'establishment's cryptocurrency' - has given back about 60% of its market value over a two week period. At US$1.30 per unit, Ripple's XRP token was down more than 28% on Tuesday morning.
Ethereum, meanwhile, was almost 19% lower, changing hands just above US$1,046.
Bitcoin #BTC gunning for support at $12,000, not a lot of support underneath before $10,000
- Neil Wilson (@neilwilson_etx) January 16, 2018Cryptos getting a real clobbering today - Ripple is 60% off in two weeks. For a lot of people this will be their first taste of trading and they are completely ridiculous markets. Baptism of fire doesn't even cover it. pic.twitter.com/jFs1R4ge7Z
- David Jones (@JonesTheMarkets) January 16, 2018Neil Wilson, analyst at ETX Capital, explains that the "regulatory noose" appears to be tightening around the neck of the Bitcoin and cryptocurrency market, and technical analysis of the price charts don't bode particularly well for speculators.
"Explaining moves in bitcoin is always tricky but this plunge back to the December 22nd low may well be a result of recent signs that regulatory pressures are building," Wilson said in a note.
"With bitcoin breaching $12,000, the next real technical support is around $10,000, where it traded in late November and early December before lifting off to $19k.
"But at send time bitcoin had bounced off support to pare losses and trade just shy of $12,200 in what is looking like a particularly volatile session, even for this asset."
Wilson added that the regulatory crunch is coming "sooner rather than later".
"China is said to be targeting websites and mobile apps that offer exchange-like services, in a bid to block access to platforms that deliver centralised trading on cryptocurrencies.
"In addition to developments in China, South Korean Finance Minister Kim Dong-yeon reiterated on Tuesday that the government is actively considering an outright ban on crypto trading.
"Meanwhile there may be growing consensus among European regulators to act in concert. We note that the Bundesbank has called for a global regulation for Bitcoin, while France's finance minister is seeking to draft tougher rules for cryptocurrencies."
The FTSE 100 was trading in positive ground as new inflation statistics take some weight off investor sentiments.
London's blue-chip benchmark was up 18 points, 0.23%, changing hands at 7,786.
Inflation was in focus for investors with Tuesday's release of Britain's December measure of the consumer price index (CPI), which marked +3% and was down slightly from the preceding month.
The 'core CPI' figure, which excludes food and energy prices, increased by a slightly smaller margin than was anticipated - the December number was 2.5% rather than the 2.6% forecast, and the 2.7% seen in the preceding comparative.
David Cheetham, analyst at online broker XTB, said the Bank of England may be hopeful that we have now seen a 'high water mark' for inflation and that rising price pressures are beginning to wane.
"Given that the largest single contributory factor for above-target inflation has been the slump in the Pound since the Brexit vote, the recent appreciation that saw Sterling hit its highest level against the US dollar since the referendum just yesterday, should mean that going forward lower inflation can be expected."
Ben Brettell, senior economist at stockbroker Hargreaves Lansdowne, added: "Inflation's been a hot topic since the Brexit vote caused a sharp drop in sterling 18 months ago.
"But logic has always dictated that once the effect of the weaker pound had percolated into the real economy, it should then start to drop out of the year-on-year calculations 12 months later.
"In January last year consumer price inflation stood at just 1.8%, but rose to what now looks like a peak of 3.1% in November. It now seems likely we'll see the rate steadily fall back towards the 2% target over the next year or so, though the ONS reckons it's too early to say the peak has been reached.
"Strip out the Brexit noise and the UK's underlying economic situation doesn't look materially different from the rest of the developed world. Big themes like an ageing demographic and the rise of disruptive technologies are exerting downward pressure on prices.
"I see no reason why UK inflation won't gradually return to the very low levels which persist among our developed-world peers."
Elsewhere, Zurich UK's Alistair Wilson, highlighted that family finances continue to feel the strain.
"Still remaining well above the Bank's 2% target, another interest rate rise is not off the table," Alistair Wilson said.
"While there are positive signs that workers on minimum wage will see an above-inflation pay rise this year, it can be all too easy for any extra income to get lost on day to day spending, thanks to ever rising prices.
"To ensure any income is maximised, savers should take more control of their own finances and the New Year provides an opportunity to do just that. Time is the most effective strategy: saving a small amount each month, drip-feeding into a stocks and shares ISA or a pension, can grow into a substantial sum over the years."
BP PLC (LON:BP) was a notable mover in Tuesday's early deals, down 1.5% to trade at 524.60p, after it confirmed it will be taking a further US$1.7bn hit for US oil spill damages, in the fourth quarter of 2017, though it is expected to be the last one - meaning investors and management may finally start putting the disaster in the rear view mirror.
Cash payments for 2017 now amount to some US$3bn, which is 50% more than guided by the company back in the third quarter last year.
Rio Tinto PLC (LON:RIO), meanwhile, told investors it had hit its iron ore export targets despite difficulties with weather and rail issues. Nonetheless, the share was down 29p or 0.7% at 4,143.
Elsewhere, JD Sports PLC (LON:JD. leapt 7.2% higher, up 26.3p to 391.8p per share, as it told investors that "positive trends", reported previously, had continued and like-for-like growth is anticipated at around 3%.
Specialist personal lender Provident Financial PLC (LON:PFG) dropped 25p or 2.7%, to 895p, after revealing expectations that its credit division will report a ?120mln pre-exceptional loss, which would be at the top end of prior guidance to investors.
Pie shop Greggs PLC (LON:GRG) was on the rise, up 41p or 3.14% to 1,346p, as it revealed piping hot trading figures for the full year, with total sales up 7.4% on the preceding year while like-for-like shop sales showed a 3.7% rise.
The day after the collapse of Carillion (LON:CLLN), the market's other problem child updated on its progress (though Proactive is at pains to point out that Provident Financial Group (LON:PFG) shows no signs of careering down the road to destruction taken by the benighted infrastructure firm).
However the last year has seen around 70% of the value wiped from the doorstep lender PFG after a series of earnings alerts. The latest trading update, in which it said losses at the consumer credit division would be at the upper end of forecasts, knocked a further 5% from the share price.
Provvy currently resides in the FTSE 250, having been ejected from the top 100 shares index.
In early trade, the Footsie was more or less marking time as it advanced just seven points to 7,775.77.
The big mover, up 2.3%, was Associated British Foods (LON:ABF) after an price target upgrade from the influential London analysts of Barclays Capital. They think the stock, currently changing hands for 2,887p, is worth 3,380p.
Instem PLC (LON:INS) has won a new two-year "Standard for the Exchange of Nonclinical Data" outsourced services contract worth in excess of ?1.7mln over an initial period. The company said results for 2017 should be in line with expectations and that 2018 has started well.
Anglo Asian Mining (LON:AAZ) produced just over 72,000 gold equivalent ounces during 2017, roughly flat on production in 2016, but a considerable achievement given that the main open pit at Gedabek was on planned suspension for a considerable portion of the period.
Shares in ValiRx PLC (LON:VAL) jumped at the opening bell on Tuesday after the biotech released more positive results from the Phase II lung cancer trial of its VAL401 anti-cancer compound.
Mobile ad platform developer Taptica International PLC (LON:TAP) has raised US$30mln in new money through a placing alongside sales by some shareholders. A bookbuild exercise for 4.85mln shares at 450p (8% of the current shares in issue) raised the cash for the company.
Talks between Premier African Minerals Ltd (LON:PREM) and Zimbabwe's official Indigenisation body, the NIEEF, are continuing after poor production numbers raised questions about the future of the RHA tungsten mine. Premier's George Roach said that the NIEEF is now willing to consider a mechanism to restructure its 51% ownership of RHA.
Hummingbird Resources PLC (LON:HUM) ended 2017 with around US$40mln cash in the bank, after having brought the Yanfolila gold project in Mali into production on time and on budget. The plan is for Yanfolila to produce 130,000 ounces of gold in its first full year of production. The Malian president will officially open the mine on 14 February.
InnovaDerma PLC (LON:IDP), maker of the hugely successful Skinny Tan beauty range, said it remains confident of meeting market expectations for the year and has much greater visibility on revenues for the second half than it has in the past. The update came in a trading statement that covered the six months ended December 31 in which it said turnover grew by 31% on a constant currency basis to ?4.2mln.
Midatech Pharma PLC (LONMTPH, NASDAQ:MTP) said it has received approval for an investigational new drug application that will allow it to conduct a study of MTX110. The nanotechnology is being used to develop a possible treatment diffuse intrinsic pontine glioma, an ultra-rare and fatal brain cancer found in children.
Motif Bio PLC (LON:MTFB, NASDAQ:MTFB) said it had received a US$120,000 award from the Cystic Fibrosis Foundation. It will be used to fund early-stage (in vitro) research into using its next-generation antibiotic, iclaprim, to treat sufferers of the disease who have drug-resistant lung infections.
Genedrive PLC's (LON:GDR) Hepatitis C (HCV) ID Kit has undergone more rigorous and successful testing - this time in Africa.
Trinidad focused Touchstone Exploration Inc (LON:TXP) told investors that monthly figures for December saw oil sales of 1,536 barrels per day, up from 1,337 bopd in the month of November. Notably, production from the four wells drilled during 2017 was described as "strong", averaging 283 bopd for November and December.
Savannah Resources PLC (LON:SAV) told investors that three applications for mining leases have been submitted to the Ministry of Mineral Resources and Energy in Mozambique, for the Mutamba heavy mineral sands projects.
Gold recovery group Goldplat PLC (LON:GDP) has granted Canada-listed Ashanti Gold Corp (CVE:AGZ) an extension to complete its farm-in at the Anumso gold project in Ghana. Ashanti has an option to acquire 51% of Goldplat's interest in Anumso through US$1.5mln of exploration expenditure. This option has now been extended until 31 October this year.
Ferrum Crescent Ltd (LON:FCR) has hired Daniel Smith as its new non-executive director and company secretary with immediate effect. At the same time, the AIM-quoted junior mining group has engaged Minerva Corporate - which is part-owned and controlled by Smith - to support finance and administrative functions.
NetScientific PLC (LON:NSCI), the healthcare intellectual property commercialisation group, said all of its portfolio companies advanced their commercial operations in 2018.
Secured debt-focused investment trust RM Secured Direct Lending PLC (LON:RDML) saw its net asset value per share rise 0.23p to 98.59p in December. The shares currently trade at 102.15p.
Professor Stuart Martin from the University of Maryland School of Medicine is to present a webinar on Wednesday (17 January) describing his breakthrough work using ANGLE PLC's (LON:AGL) Parsortix system.
The Footsie is seen starting firmer this morning, recovering after yesterday's modest falls in the absence of any US trading on Monday due to a public holiday, with Asian market finding gains late on and UK inflation data the main focus.
Spread betting firm CMC Markets expects the FTSE 100 index to open around 15 points higher at 7,784, having lost 9.5 points on Monday.
On currency markets, after good gains yesterday, the pound was fairly flat overnight versus both the dollar and the euro ahead of the release of the first of the week's important UK economic data.
The consumer prices index hit a six year high of 3.1% in November, forcing Bank of England governor Mark Carney to pull out his pen and write a letter to the Chancellor.
Economists don't expect him to have to explain himself once again, with December's reading seen slipping back to 3% as a slightly stronger pound, coupled with November's modest UK interest rate hike should see inflation start to be reined in.
Food prices, however, are likely to be sharply higher than they were last year, although it was actually air fares that were mostly to blame for the jump past 3% last time around.
But should inflation stay the same or actually rise, the pound could move higher as speculation will start to mount that the BoE could be forced to raise interest rates once again, although Carney will be hoping that isn't case.
With inflation awaited, and official retail sales data due at the end of this week, more Christmas trading statements from the high street will continue to dominate on the corporate front, with Dunelm PLC (LON:DNLM), Greggs PLC (LON:GRG) and JD Sports Fashion PLC (LON:JD.) all due to update today.
After a strong first quarter performance, home furnishings retailer Dunelm faces much tougher comparatives for its second quarter update having recovered after a poor start to full year 2017 to record a solid Christmas trading result last year.
The firm - which in December unveiled the appointment of Nick Wilkinson, the former boss of Evans Cycles as its new chief executive officer with effect from February 1 - reported total like-for-like sales (LFLs) growth of 9.3% for the first quarter, with total group sales leaping by 24.8%..
That was a marked acceleration from the 3.8% growth reported for the previous quarter, clearly benefiting from the heatwave in August/September 2016 which saw LFLs then decline by 3.8%.
Given that surprise swing, analysts at Numis Securities expect Dunelm's second quarter LFLs to trend back towards their full year LFL assumption of 2.3%, and they forecast growth at 2.5%.
The focus from an expected trading update for blue chip speciality chemicals group Johnson Matthey PLC (LON:JMAT) will be on its plans to develop an electric car battery business.
Back in September, the FTSE 100-listed firm, which has been focused on making catalytic convertors for petrol and diesel cars, announced that it would invest ?200mln into the development of high energy battery material in 2018.
In a note to clients on Monday, German broker Berenberg upgraded its rating for Johnson Matthey to 'buy' from 'hold' saying it believes the stock offers an electric car battery "opportunity for free".
Trading updates: Ashmore group PLC (LON:ASHM), Dunelm PLC (LON:DNLM), Greggs PLC (LON:GRG), JD Sports Fashion PLC (LON:JD.), Johnson Matthey PLC (LON:JMAT), The Gym Group PLC (LON:GYM), Ophir Energy PLC (LON:OPHR), Premier Foods PLC (LON:PFD)
Interims: K3 Capital Group PLC (LON:K3C), NCC Group PLC (LON:NCC), 1PM PLC (LON:OPM)
Economic data: UK CPI, RPI, PPI, HPI inflation; US Empire State manufacturing survey