By Steve Goldstein
A downturn in commodity prices blasted the FTSE 100 on Thursday.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.67% tumbled 2.1% to 7022.60, as the index’s oil and mining plays suffered.
BP /zigman2/quotes/202286639/delayed UK:BP +0.27% lost 4% and Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA +0.54% fell 3% as oil prices fell 3%, and Anglo American /zigman2/quotes/201381512/delayed UK:AAL -1.34% — which was trading without the rights to its dividend payment — paced a retreat in the mining sector as copper /zigman2/quotes/210054311/delayed HG00 +0.42% and platinum /zigman2/quotes/210261555/delayed PL00 +0.02% prices dropped.
It was the first opportunity for traders in London to react to minutes from the last Federal Reserve meeting indicated officials were ready to start reducing their bond purchases this year.
“The Fed minutes, showing a split between members over when to start scaling back financial stimulus, the continuing spread globally for the delta variant, weakness in the Chinese economy and the turmoil in Afghanistan add up to a cocktail of worries which are dogging investor sentiment,” said Russ Mould, investment director at AJ Bell.