FTSE 100 movers: Glencore leads mining stocks lower

The FTSE 100 slipped 2.60% to 5,949.16 points on Tuesday afternoon, led by a decline in mining stocks.

Glencore was the top faller, as commodity prices edged lower and Credit Suisse said weak demand from China and emerging markets would continue to drag on the sector.

Credit Suisse added that iron ore was set to do worst from current levels while copper prices were seen “hovering” around the top-end of the cost curve (220 US cents) until a deficit reappeared in the market, towards 2018.

Antofagasta and Anglo American also declined on downgrades from Credit Suisse.

Going the other way, RSA Insurance Group jumped, rebounding from declines on Monday, after confirming Scott Egan will begin as chief financial officer next month and amid news that Zurich Insurance has ended offer talks with the London-listed insurer. Deutsche Bank cut its target price to 430p from 540p, saying there are few or no obvious suiters in view and certainly not any likely to match what Zurich had been indicating.

“As we commented at the time, Zurich had a particularly strong combination of funding capacity and synergies with RSA; thus, if Zurich couldn’t make it work, we doubt that other western insurers can either,” said DB.

FTSE 100 - Risers

RSA Insurance Group (RSA) 408.20p +1.22%

Smith & Nephew (SN.) 1,167.00p +0.17%

FTSE 100 - Fallers

Glencore (GLEN) 107.20p -9.92%

Johnson Matthey (JMAT) 2,310.00p -8.41%

Antofagasta (ANTO) 528.00p -6.63%

Anglo American (AAL) 651.50p -6.25%

GKN (GKN) 256.60p -5.77%

BHP Billiton (BLT) 1,029.00p -4.37%

Shire Plc (SHP) 4,601.00p -4.05%

Hikma Pharmaceuticals (HIK) 2,394.00p -3.86%

AstraZeneca (AZN) 4,212.50p -3.80%

International Consolidated Airlines Group SA (CDI) (IAG) 572.50p -3.70%