Sector movers: Oil, mining stocks continue to drag London market lower

Mining, oil and gas stocks led the London market lower yet again over Tuesday’s session, with the Greek debt crisis and the Chinese equities selloff lurking in the background.

The FTSE 100 index closed down 1.58% or 103.47 points at 6432.21 with oilfield services, oil and gas, and mining stocks dragging the blue chip index lower for second successive session. If anything, the sell-off deepened on Tuesday as investors spooked by China’s economic prospects triggered huge declines the base metals market.

Past the midway point in trading, three-month contracts for aluminium (broadly flat), copper (down 2.4%), lead (down 0.7%), nickel (down 3.7%), tin (down 1.1%) and zinc (down 0.5%) were firmly in the red on the London Metal Exchange, with a stronger dollar combining with uncertainty over Greece and China pulled the market down.

Invariably, mining and metals stock took a hit with Glencore being the biggest blue chip faller shedding 6.87% or 17p at 230.60p, and Anglo American down 5.76% or 50.90 at 832.30p in close attendance. Additionally, Kaz Minerals (down 7.51%) and Lonmin (down 6.67%) were among the biggest fallers on the FTSE 250.

Fresnillo (down 4.59%), Antofagasta (down 3.96%), Rio Tinto (down 3.32%) and BHP Billiton (down 2.82%) were among other big names trading in the red.

Wider natural resources downturn meant oilfield and engineering stocks were also sharply lower. Weir Group (down 5.04%), Wood Group (down 6.87%) and Petrofac (down 6.73%) endured a pretty dire session.

Among the oil and gas producers, Tullow Oil (down 7.38%), Premier Oil (down 6.47%) and Genel Energy (down 4.52%) led the sector declines. Additionally, the blue chip trio of BP (down 2.55%), BG Group (down 2.50%) and Royal Dutch Shell (‘a’ shares down 0.68% / ‘b’ shares down 2.17%) were predictably in the red, following a sharp decline in the oil price with Brent well below $60.