Business

FTSE 100 dragged lower by commodities stocks

Market trader (file picture) Image copyright Getty Images

The FTSE 100 has closed lower after falling commodities prices hit mining and oil stocks.

By the end of day the index had shed 51 points or 0.68% to 7,473.

Mining companies saw some of the biggest falls after copper and iron ore prices slipped. Antofagasta dived 4.7% and Glencore fell 3.9%.

BP and Royal Dutch Shell both lost more than 2% as oil prices fell on fresh fears of oversupply in the worldwide oil industry.

Brent crude fell to a seven-month low and was last trading down 2.6% at $45.70 per barrel.

Shares in plumbing services firm Wolseley pared early losses to end flat, after the company reported an increase in third-quarter profits.

The firm - which owns Plumb Center - reported a 9.5% rise in trading profits to £254m in the three months to 30 April.

Pound slumps

On the currency markets the pound fell sharply after the Bank of England governor said he did not favour an interest rate rise at the moment.

Sterling was down almost 1% against the dollar at $1.26, having slid after Mark Carney made the comments in his Mansion House speech in London.

Last week, the Bank of England held interest rates at 0.25%, though three of the eight policymakers on the bank's Monetary Policy Committee voted for a rate rise.

However, Mr Carney said he thought a rise now would be premature.

He said uncertainty over the direction of the economy and "anaemic" wage growth meant that "now is not yet the time to begin" increasing rates.

The pound also fell against the euro, dropping 0.7% to 1.13 euros.