FTSE 100 dips as oil prices lose ground
On Tuesday, British stocks slumped, thus demonstrating an ongling dive for a third session in four, with losses in stocks of market heavyweight Standard Chartered PLC and BHP Billiton PLC, underscoring festering concerns regarding the heatlh of financial as well as mining companies.
The British FTSE 100 went down to 5,996.45 or 0.6%. On Monday, the blue-chips benchmarks grabbed its first gain in three sessions, driven by revenues for commodity issues. Resource stocks make up approximately one-firth of the FTSE 100.
Putting down the index on Tuesday were stocks of BHP Billiton PLC with their 4.3% dip. The world’s largest miner by market value cut its midyear dividend by 74%. According to BHP, the given move is expected to protect its balance sheet during the prolonged period of low commodity prices.
Apart from that, BHP reported a $5.67 billion first-half loss in part due to a write down of American energy assets.
Sticking with resources, crude oil prices slumped more than 2%, as market participants derived profits after a recent higher run for prices. To add to this, BP PLC decreased 2%, while Royal Dutch Shell PLC went down 0.9%.