View the article online at http://citywire.co.uk/money/article/a884558
Miners and oil stocks drag down FTSE as crude slumps
Miners slump to bottom of index while oil stocks suffer as Saudi Arabia quashes hopes of production cuts.
Miners have dragged the FTSE 100 lower, with BHP Billiton enduring a second day of heavy falls after slashing its dividend yesterday.
The UK blue-chip index fell 95 points, or 1.6%, to 5,869, with miners rooted to the bottom of the index, nursing big losses. Fallers included:
- Glencore (GLEN) -8.5% at 118.4p;
- BHP Billiton (BLT) -8.1% at 686.9p;
- Anglo American (AAL) -7.5% at 419.3p;
- Antofagasta (ANTO) -5.1% at 471.5p;
- Rio Tinto (RIO) -4.3% at £19.02.
Among smaller stocks, BlackRock World Mining (BRWM ) was a big faller, down 4.2% to 185.6p.
Oil stocks were also hit, as the price of Brent crude suffered another slide, down 2.4% at $32.48, after Saudi Arabian oil minister Ali al-Naimi ruled out production cuts. Shell (RDSb) fell 3.1% to £15.23 while BP (BP) dropped 3% to 335.1p.
'Equity markets nursing losses this morning, backtracking from valiant attempts to deliver breakouts,' said Mike van Dulken, head of research at Accendo Markets. 'The driver? I'm afraid it's oil again, and markets are also coming round to the fact that there is a distinct absence of good news doing the rounds to keep the major indices up around recent highs.'
Standard Chartered (STAN) also endured a second successive day of big losses, down 4.3% at 389.5p and down more than 10% since revealing a 84% fall in profits last year. A host of analysts have cut their forecasts on the bank following yesterday's results.
Burberry (BRBY) fell 4.7% to £11.76, as the luxury sector came under pressure following a poorly received update from Hugo Boss (BOSSn.DE).
House builders were among the few stocks to make gains. Persimmon (PSN) continued to rise, up 2% at £20.69 after revealing an enhanced capital return plan for shareholders yesterday, while Barratt Developments (BDEV) was up 1.3% at 569p after reporting a strong first half.
International Personal Finance (IPF) tumbled 16% to 222.5p, the biggest falling 'mid cap' in the FTSE 250 index after the chief executive repeated a warning that regulatory changes in Poland and Slovakia would hurt profits from this year. Profits for 2015, however, squeezed above expections helped by progression in its digital unit and in Mexico.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the shares
- Glencore PLC (GLEN.L)
- BHP Billiton PLC (BLT.L)
- Anglo American PLC (AAL.L)
- Antofagasta PLC (ANTO.L)
- Rio Tinto PLC (RIO.L)
- Royal Dutch Shell PLC (RDSb.L)
- BP PLC (BP.L)
- Standard Chartered PLC (STAN.L)
- Burberry Group PLC (BRBY.L)
- Barratt Developments PLC (BDEV.L)
- Persimmon PLC (PSN.L)
- International Personal Finance PLC
Look up the investment trusts
More from us
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.