By Sudip Kar-Gupta
LONDON (Reuters) - Britain's benchmark equity index dropped on Tuesday to its lowest level in around six months, hit by persistent concerns over Greece and a pullback in mining stocks as metal prices fell.
The blue-chip FTSE 100 index (FTSE) closed down 1.6 percent at 6,432.21 points, around its lowest since mid-January.
Global stock markets lost ground after a Eurogroup meeting of euro zone finance ministers failed to bring about a clearer picture on the outlook for Greece.
Greek voters on Sunday rejected austerity measures imposed as part of a bailout, increasing the risk that Greece may leave the euro zone.
Mining stocks (FTNMX1770) slid after copper prices fell to six-year lows, partly due to concern about economic growth in China, the world's top metals consumer. [MET/L]
"While Greece remains in focus, the volatility in Chinese stock markets has continued, impacting on commodity prices and related sectors such as the miners," Hargreaves Lansdown (LONDON:HRGV) equity analyst Keith Bowman said.
Rolls-Royce (L:RR) fell 5.4 percent, extending a 6.3 percent drop in the previous session when the company cut profit forecasts, after investment banks Natixis, Investec, Bernstein and RBC all reduced price targets on the stock.
Rolls-Royce was among the weakest FTSE 100 stocks in percentage terms, while property group Land Securities (L:LAND) was the top gainer, rising 1.6 percent after UBS raised its rating on the stock to "buy" from "neutral".
The FTSE 100 is down 2 percent this year, and some 10 percent below a record high of 7,122.74 points reached in April.