FTSE retreats on mining stocks
Mining stocks dragged down the FTSE 100 this afternoon as the index closed 2.34 per cent lower, bringing a six-day rally to an end.
FTSE retreats on mining stocks" class="imageframe alignright" height="200" src="http://pictures.directnews.co.uk/liveimages/Mine_1455_18861209_0_0_3023_300.jpg" width="200"/>Mining stocks dragged down the FTSE 100 this afternoon as the index closed 2.34 per cent lower, bringing a six-day rally to an end.
The blue-chip index lost 108 points from yesterday as a fall in commodity prices and fears over the downturn led to a retreat in mining stocks.
Eurasian Natural Resources declined 12 per cent, Kazakhmys fell 10.82 per cent and Vedanta was down 9.15 per cent.
Financial and retail stocks were among the risers on the FTSE this afternoon, with Royal Bank of Scotland ahead by 5.83 per cent, Next up 5.69 per cent and Barclays up 5.38 per cent.
Anthony Grech, market strategist for IG Index, said: "The downturn in the financial markets today was always a likely scenario, as investors on both sides of the Atlantic looked to take profit from recent gains.
"Perhaps more worryingly following the warm glow of US election fever, the focus has also returned to the cold light of economic reality.
"Looking ahead I anticipate an interesting couple of days in world markets, with tomorrow's UK and eurozone interest rate decisions closely watched."
The Bank of England is due to announce its decision on the interest rate tomorrow with most analysts expecting a cut.