Having rallied so confidently yesterday, the FTSE 100 has taken a dive of almost 1% within the first hour of trading this morning, which has pushed the index back under 4500 and the share value of mining companies down.
Anglo American, BHP Billiton and Rio Tinto Group, the world's three largest mining companies, saw their share prices drop at least 2% after it was suggested demand for copper in China could affect world supply, knocking the FTSE 100 by 39 points or 0.9% to 4476.5.
As a result, the copper price dropped, and Anglo American lost 31p or 2.3% to £13.07. BHP Billiton, the world's largest mining company, fell 14.5p or 2.8% to 498p while Rio Tinto Plc, the world's third-biggest miner, dropped 40p or 2.9% to £13.42.
Marks & Spencer, the high street chain, didn’t exactly ease matters by announcing its newest stores – opened within the last year – have seen sales fall by at least 3% in the last three months.
Shares in M&S subsequently fell 13.5p or 4.9% to 263p, while JJB Sports, the high street sports chain, also fell 21p or 6.7% to 291p after reporting fiscal full-year profit is down 8.7% to £45.5m.
In Asian trading, it was the mining stocks again which aggravated activity, as BHP Billiton and PetroChina Co also led the losses in Australia.
The Japanese Nikkei 225 index closed down a fraction at 12,098 by 3pm in Tokyo and Hong Kong's Hang Seng index slid 1.5% to 12,832, but the Taiwanese TWSE index gained 1.3% to 6880.
HSBC Holdings, the world's second-biggest bank by market value and which has dual listing in London and Hong Kong, also closed down 0.8% to HK$117.5.
And in the US yesterday, the markets closed down over 1% ahead of a live press conference delivered by President George W. Bush last night.
The Dow Jones index closed down 134 points or 1.28% to 10,381 while the S&P 500 index dropped 15.76 points or 1.38% to 1,129 and the Nasdaq Composite index fell 35 points or 1.7% to 2,030.IFAonline
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