Falling shares in miners hit FTSE 100
(Close): A fall in mining shares hit the main indexes in London, with the FTSE 100 closing down more than 1%.
The leading index closed down 69.63 points at 6231.89.
HOusebuilders all but wiped out their earlier falls. Taylor Wimpey ended flat and Berkeley Group ended less than 1% down after a report from chartered surveyors forecasted a short-term drop in UK house prices over the next three months.
Rolls-Royce was also a loser, with a 2% fall.
The chief executive of Rolls-Royce has warned staff that the engineering firm is behind with deliveries to customers, according to the Financial Times.
On the FTSE 250 builder Bellway was also caught in the general decline of construction shares, with a 1% fall.
That was despite an upbeat trading statement.
"That survey from RICS [Royal Institution of Chartered Surveyors] about a first possible drop in house prices since 2012, is clearly spooking people," said Russ Mould, investment director at AJ Bell.
"It is tax-related and maybe a little bit Brexit related, but some will be wondering whether there are more fundamental factors slowing us down, as prices are just at such high levels."
Flybe shares ended 5.5% lower, despite returning to profit.