Commodity falls hit FTSE
Weak commodity stocks caused the FTSE 100 Index to slip below the 4,200 barrier for the first time since late April today.
Miners extended falls seen last week, while oil prices below $65 a barrel hit BP and Royal Dutch Shell.
The declines left the FTSE 100 Index more than 1% lower, down 50 points at 4186.3 by mid-morning as investors struggled for momentum after US markets were closed on Friday for the Independence Day holiday.
Lonmin was the worst affected among miners – down 8% or 99p at 1060p – as fears over the economic recovery continued to dog commodities following last week’s poor jobs figures in the US and Europe.
Xstrata was off 42.8p at 612p and Kazakhmys fell 28p to 602p.
Shell and BP were also off, down 42p to 1459p and 12.1p to 467.25p respectively.
The biggest rise of the session came from BT Group after it emerged employees had been offered the chance of long-term holidays in return for pay cuts. Shares were 1.35p higher at 103.45p.
In a strong session for telecoms companies, Vodafone rose 1.05p to 114.75p and Cable & Wireless lifted a penny to 133.7p.
In the second tier, an expected flurry of updates from housebuilders over the week ahead put the spotlight firmly on the sector.
With expectations for the major players to confirm more encouraging signs on demand and prices, shares moved higher, led by Bovis Homes up 8.5p to 385p and Bellway 11.5p stronger at 622.5p.
They were joined on the way up by easyJet after analysts said the low-cost airline’s latest passenger figures showed steady trading. Shares were 2% or 5.75p higher at 272.25p.
But elsewhere, retail chain JJB Sports plunged more than 21%, or 6.5p to 24.25p, after weekend confirmation that it is considering tapping shareholders for cash.
The firm is also at the centre of controversy after it emerged boss David Jones borrowed £1.5bn (€1.73bn) from the billionaire behind rival Sports Direct.
