Sector Movers: Resource stocks drag London market lower

The FTSE 100 closed 1.00% or 57.17 points lower at 5,632.19, while the FTSE 250 ended 1.17% of 181.06 points lower at 15,316.93. Oil futures endured another volatile session as the WTI front-month contract fell below $30 per barrel, while metals saw lacklustre trading in Europe.

At 1748 GMT, WTI was 0.91% or 27 cents lower at $29.42 per barrel, while Brent was down 2.49% or 82 cents to $32.06 per barrel. Away from oil markets, precious metals had a decidedly lacklustre session.

COMEX gold futures contract for April delivery fell 0.26% or $3.10 to $1,194.80 an ounce after stacking up gains of over 3.5% overnight, but spot gold was 0.51% or $6.30 higher at $1,195.73 an ounce.

COMEX silver futures fell 0.04% or two cents to $15.42 an ounce, while spot platinum rose 1.14% or $10.53 to $935.48 an ounce.

Base metal contracts saw red across the London Metal Exchange board, with the much scrutinised three-month copper delivery futures contract down 3.6% to $4,471.00 per tonne at 1635 GMT.

Concurrently, primary aluminium (down 1.2%), zinc (down 3.4%), lead (down 1.2%), tin (down 0.3%) and nickel (down 1.8%) three-month futures joined copper in posting declines.

Predictably, Anglo American (down 11.25%), Antofagasta (down 9.37%), Glencore (down 8.13%) and BHP Billiton (down 5.85%) ended up among the biggest FTSE 100 fallers.

Broker notes also weighed on the sector as Goldman Sachs downgraded Antofagasta to ‘sell’ from ‘neutral’. Among the midcaps, Vedanta Resources (down 10.86%) and Tullow Oil (down 8.03%) were the biggest FTSE 250 fallers.

Away from resource stocks, Asia-focussed FTSE 100 bank Standard Chartered (down 5.55%) also felt the heat from turbulence in emerging markets. On a more positive note, housebuilder Redrow nudged higher after posting a rise in first half pre-tax profit as revenue and completions grew.

Legal & General rallied after the insurer and investment manager updated the market with details of its annuity bond portfolio.

Finally, retailer Next (up 3.65%) led the FTSE 100, while supermarket J Sainsbury was another high-riser after market research firm Kantar said it was continuing to outperform the industry.