Commodities drag FTSE 100 Index lower

London’s top-flight fell for the fourth day in a row as disappointing economic data from China dragged on commodity stocks though oil prices stabilised.

Commodities drag FTSE 100 Index lower

London’s top-flight fell for the fourth day in a row as disappointing economic data from China dragged on commodity stocks though oil prices stabilised.

The FTSE 100 Index was 2.4% lower on the week including the impact of a broad sell-off in Thursday’s session as a military flare-up in the Middle East pushed the price of a barrel of Brent crude towards 60 US dollars.

The index was 40.3 points lower at 6855 today as the oil price edged down to around 58 US dollars but overnight figures from China showed a sharp decline in industrial profits.

It meant the FTSE registered another day of losses as the buoyant mood which saw it top the 7,000 landmark last week – and achieve further record highs at the start of this one – ebbed away.

On currency markets, the pound was bolstered by remarks from Bank of England governor Mark Carney that he expected the next move in interest rates to be up.

It echoed similar comments from a series of Bank policy makers this week offering reassurance over fears about the potential negative consequences of low inflation after figures showed it fell to zero in February.

Sterling rose against the dollar at just under 1.49, but was flat against the euro at 1.36.

Germany’s Dax and France’s Cac 40 finished the week with a positive session after a tough week.

In London, data from China, adding to concerns about a slowdown in the world’s second biggest economy, weighed on commodity stocks.

Anglo American led the top-flight fallers as it dropped 3%, or 32.5p to 1044p, while Randgold Resources was not far behind, off 146p at 4756p. Glencore fell 9.05p at 288.15p with Rio Tinto down 67.5p to 2809.5p.

In corporate news, state-backed Royal Bank of Scotland agreed to sell the international arm of private bank Coutts to Switzerland’s Union Bancaire Privee, reportedly for up to 800 million US dollars (£584 million).

But RBS, 80% owned by the taxpayer, said it would result in a £200 million hit to first quarter results after taking into account restructuring and other charges. Shares fell 7.2p to 343.1p.

Easyjet was among the top-flight risers as it bounced back from an oil price inspired slide in the previous session, and traders instead digested the implications of Thursday’s positive trading update.

The low-cost airline was also benefiting from an upgrade by brokers at RBC Capital Markets. Shares rose 21p to 1858p. British Airways owner International Airlines Group was ahead too, climbing 7p to 594p.

The biggest risers on the FTSE 100 Index were Carnival up 217p at 3241p, Intercontinental Hotels Group up 71p at 2640p, Shire up 115p at 5425p and SABMiller up 51p at 3613p.

The biggest fallers on the FTSE 100 Index were Weir Group down 63p at 1714p, Glencore down 9.05p at 288.15p, Sports Direct International down 19.5p at 621.5p and Anglo American down 32.5p at 1044p.

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