FTSE 100 Edges Up As CMA Approval For Barratt/ Redrow Deal Nearing?

The FTSE 100 index has recorded marginal gains, adding 0.21%, propped up by an uptick in the mining sector due to a rebound in iron ore prices. The UK's public borrowing figures, however, have painted a less rosy picture, coming in higher than anticipated for July and raising concerns over the government's budget.

The uplift in iron ore prices to around $94 a tonne has been a shot in the arm for the mining industry. This price rebound is largely attributed to anticipated stimulus measures from China as the country grapples with an economic transition that may dampen its previously steel-intensive construction boom.

This positive sentiment in the materials sector has contributed to the rise, with Rio Tinto (RIO), Fresnillo (FRES) and Glencore (GLEN) all emerging as top 10 in the daily FTSE 100 performers.

Despite closing its investigations into Apple's App Store and the Google Play Store, the UK’s Competition and Markets Authority (CMA) has not turned a blind eye to the market dominance of these platforms. The watchdog voiced apprehensions that the current market position of both Apple and Google could hinder competition and lead to higher prices for consumers downloading and using apps.

At the other end of FTSE performers, you have some of the homebuilders, as Barratt, and Taylor Wimpey both take a dip. In a move that signals consolidation within the housing industry, Barratt Developments PLC's acquisition of competitor Redrow is expected to sail through without further scrutiny from the Competition and Markets Authority (CMA). This is a testament to the CMA’s confidence in the transaction not raising substantive competition concerns.

The UK's public borrowing for July has hit £3.1 billion, the highest figure for the month in two years. This upsurge can be attributed to increased public service spending and welfare costs, indicating a fiscal pressure point for the UK government that could warrant closer monitoring and policy adjustments moving forward.

In summary, while the FTSE 100 has managed to eke out some gains due to the buoyancy in the mining sector, concerns over public borrowing and developing trade disputes underscore the challenging and complex economic landscape in the UK and beyond.