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UK mining and energy indexes hit 11-yr lows on China concerns

Published 07/01/2016, 09:11
Updated 07/01/2016, 09:20
© Reuters. UK mining and energy indexes hit 11-yr lows on China concerns
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LONDON (Reuters) - UK mining and energy shares indexes slumped to their lowest level in more than 11 years on Thursday, with a sharp decline in prices of major industrial metals and crude oil on China-related concerns promoting investors to dump shares.

China, a major consumer of commodities in the world, let the yuan slip, sending regional currencies and stock markets tumbling. The offshore yuan <CNH=D3> fell to a fresh record low since trading started in 2010, while local stock markets were suspended less than half an hour after opening, the second emergency suspension this week.

The FTSE 350 Mining (FTNMX1770) and Oil and Gas (FTNMX0530) index fell more than 5 percent to their lowest level in more than 11 years, tracking a 1.1-3.5 percent fall in prices of commodities such as copper, aluminium and crude oil.

Shares in Anglo American (L:AAL), Glencore (L:GLEN), BHP Billiton (L:BLT), BG Group (L:BG) and Royal Dutch Shell (L:RDSa) fell 5.6 to 9.7 percent.

The commodity-heavy FTSE 100 index (FTSE) of Britain's blue-chip companies hit a three-week low and was down 2.9 percent by 0902 GMT.

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