FTSE extends falls after commodities drag down index – London Report
Shares linked to the economic cycle gave up ground yesterday over concerns on growth in some countries and an oversupplied commodity market.
The blue-chip FTSE 100 index fell 0.8 per cent to 6,365.27 points, its biggest daily loss in almost two weeks.
Investors avoided strong bets ahead of the outcome of a two-day Federal Reserve meeting, which started yesterday, at which the US central bank is expected to leave rates unchanged. “There does seem to be a certain amount of pause for breath ahead of the meeting this week,” Brenda Kelly, head analyst at London Capital Markets, said, adding she expected markets to rally if the Fed did not raise rates.
The UK mining index fell 3.1 per cent, with BHP Billiton, Anglo American, Rio Tinto, Antofagasta and Glencore down 2.2 to 5.7 per cent.
Shares in TalkTalk shot up 13.2 per cent following news a youth was arrested – and subsequently bailed – in Northern Ireland on Monday in connection with a huge cyber attack on the mid-cap telecoms provider.