Sector movers: Mining, oil stocks drag London market lower
Updated : 18:20
Oil and mining stocks pushed the London market lower on Thursday, as metal prices took a turn for the worse.
The FTSE 100 ended 0.65% or 42.00 points lower at 6,395.80, while the FTSE 250 was 0.17% or 29.54 points lower at 17114.41. Gold futures were in negative territory, after the US Federal Reserve decided to keep interest rates unchanged overnight at 0.25% but left the door open to an increase in December.
The development dented confidence in the precious metals market. At 1603 GMT, COMEX gold futures contract was down 2.31% or $27.20 at $1,148.90 an ounce, while spot gold was 0.54% or $6.30 lower at $1,149.80 an ounce.
COMEX silver fell 4.38% or 71 cents to $15.58 an ounce, while spot platinum was 0.87% or $9.69 down at $992.15 an ounce. Meanwhile, base metals futures conveyed a mixed picture on the London Metal Exchange.
Past the midway point of trading, three-month delivery contracts of primary aluminium (up 0.3%) and nickel (up 0.8%) were up, while copper (down 0.4%), lead (down 1.0%), tin (down 1.8%), and zinc (down 1.4%) were all trading lower. Spot iron ore prices headed back below $50 per tonne overnight as demand for the steelmaking raw material from Chinese mills continued to fall.
Anglo American (down 4.62%) and Randgold Resources (down 5.06%) were among the biggest FTSE 100 fallers. Centamin (down 6.31%) was among the fallers mix on the FTSE 250, with oil and gas companies Premier Oil (down 6.52%), Tullow Oil (down 4.75%), and Nostrum Oil & Gas (down 4.60%) for company as the oil price remained volatile.
However, Petra Diamonds (up 3%) recouped some of the previous session’s losses. Merlin Entertainments (up 2.22%) gained, as analysts suggested last week's news that the company and a Chinese state-backed private equity partner are preparing a joint venture for Legoland Park in Shanghai was price positive.
Elsewhere, Barclays tumbled after reporting a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell. Smith & Nephew dropped after posting a drop in third quarter reported revenue on currency headwinds and announcing the acquisition of robotics company Blue Belt Technologies.