FTSE 100 dips amid slumping mining stocks and oil
On Wednesday, British shares dropped, with further decreases in energy prices, thus assisting to drive the FTSE 100 towards a second straight loss.
The FTSE 100 traded at5,921.48, a 0.7% loss. The benchmark definitely led by losses among oil, gas and mining shares, making up approximately a fifth of the index’s overall weighting.
A mixed Asian session has made the EU indices deal with Brent crude’s latest slump with little optimism. Undoubtedly, that was quite negative data for the FTSE, as oil as well as mining shares started their trading session in the regular shade of claret.
West Texas Intermediate crude oil sagged to $31.28 or 2%, while Brent crude lacked 1%, trading at $32.92, extending losses after on Tuesday, Ali al-Naimi, the oil minister of Saudi Arabia ruined investors’ hopes of a production cut.
Stocks of BP PLC dived 1.5%, while Royal Dutch Shell PLC went down 1.8%. Mining shares are still facing the sting of BHP PLC’s tough decision announced on Tuesday. That day the company decided to cut down its midyear dividend by about 74% because it hampers what might be an extended period of low commodity prices.