This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-34322790
The article has changed 4 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
FTSE 100 slides as mining shares suffer | |
(about 1 hour later) | |
The UK stock market has fallen sharply, together with other European markets, with mining firms suffering after commodity prices declined. | |
By midday, the FTSE 100 was down 106.17 points, or 1.7%, at 6,002.54, having fallen more than 2% earlier. | |
Mining shares led the falls after commodity prices continued to weaken. Copper prices hit two-week lows and oil prices dropped after rising on Monday. | Mining shares led the falls after commodity prices continued to weaken. Copper prices hit two-week lows and oil prices dropped after rising on Monday. |
Among mining firms, Glencore fell 8.4% while Anglo American was down 6.2%. | |
Commodity prices have been hit by the slowdown in the Chinese economy, which is a huge importer of raw materials. | Commodity prices have been hit by the slowdown in the Chinese economy, which is a huge importer of raw materials. |
Investors are also waiting for a survey, due to be released on Wednesday, that will provide the latest snapshot of the health of China's manufacturing sector. | |
Oil prices also fell, reversing some of the gains seen on Monday. The price of Brent crude was down 78 cents at $48.14 a barrel, having dropped below $48 earlier. | |
"Until China demand and emerging market currencies find a floor, it will remain challenging to put an absolute floor on commodity prices," said analysts at Credit Suisse. | |
Carmakers suffer | |
Big falls were also seen across other European markets, with Germany's Dax index down 2.5% and France's Cac 40 index dropping 2.7%. | |
Shares in carmakers saw the biggest falls, as the fallout continued from Volkswagen's rigging of US car emissions tests. | Shares in carmakers saw the biggest falls, as the fallout continued from Volkswagen's rigging of US car emissions tests. |
Shares in VW dived another 18%, while rivals BMW and Daimler were both down more than 5%. In France, shares in Renault dropped 5.6%. | |
Back in London, shares in the AA fell 8.3% after it said half-year revenues dipped 1.4% to £485m after income from its insurance business declined. | |
The AA also warned that the planned rise in insurance premium tax, due in November, was likely to affect trading in both its insurance and roadside assistance businesses. | The AA also warned that the planned rise in insurance premium tax, due in November, was likely to affect trading in both its insurance and roadside assistance businesses. |
Also in the FTSE 250, shares in Irn-Bru maker AG Barr fell 5.2% after it reported an 11.3% drop in half-year pre-tax profits to £16.9m, following "an extremely demanding six months". | Also in the FTSE 250, shares in Irn-Bru maker AG Barr fell 5.2% after it reported an 11.3% drop in half-year pre-tax profits to £16.9m, following "an extremely demanding six months". |
The company said trading had been hit by increasing competition and by the recent poor weather, although it expects full-year profits to be "broadly" the same as last year. | The company said trading had been hit by increasing competition and by the recent poor weather, although it expects full-year profits to be "broadly" the same as last year. |
On the currency markets, the pound fell 0.44% against the dollar to $1.5439, and dropped 0.12% against the euro to €1.3836. |