FTSE wipes all 2015 gains as commodity stocks take a tumble – London Report

The FTSE fell back to where it started this year, erasing all its gains made since January, down 8.4 per cent since hitting a record high in April.

 

The blue-chip FTSE 100 index ended 1.1 per cent lower at 6,505.13 points, in its longest losing streak so far in 2015.

 

Fears for economic growth in China, the world’s biggest metals and energy consumer, have hit mining stocks and oil prices, with commodity stocks accounting for more than 20 per cent of the FTSE’s market capitalisation.

 

Oil hit four-month lows yesterday after Chinese stock markets fell more than eight per cent. This in turn pushed down shares in BP and Royal Dutch Shell.

 

Read more: Commodities plunge to 13 year-low

 

Merlin Entertainment dropped 4.3 per cent after a profit warning, following its Alton Towers tragedy.

 

Financial Times-owner Pearson also took a slide, falling by 4.8 per cent, making it the worst performing FTSE 100 stock in percentage terms. The firm was hit by several brokers cutting their price targets on the company, which also announced talks to sell its 50 per cent stake in the Economist magazine.