FTSE at 7-month low on China worries
Wed close: London stocks slumped on the back of anxiety over China’s economy with the minerals and metals weighted FTSE100 dragged down to its lowest level since January.
Miner and commodities trader Glencore headed the fallers, dropping 9.7% to a record low after a 29% drop in first-half earnings due to a slide in metal and oil prices.
The mining sector slumped to its lowest since 2009 amid expectations of slower demand from the world’s second biggest economy.
Other miners followed suit and the index ended 122.84 points, or 1.88% lower at 6,403.45, its lowest closing level since 15 January. This is more than 10% below the record high of 7,122.74 in April.
Among the risers was insurer Admiral which jumped 3.8% after posting a rise in first-half pre-tax profits which beat expectations.
Royal Bank of Scotland dropped after Bloomberg reported it is close to the disposal of its Russian assets.