FTSE slumps to four-month low as the shine comes off copper

THE FTSE 100 suffered a fifth consecutive day of decline as the emerging markets sell-off intensified and copper prices plunged into a bear market.

Slowing Chinese growth, the rising safe haven appeal of the dollar, trade war worries and an emerging markets wobble combined to send the blue chip index sliding to a four-month low.

Fears that the Turkish lira crisis could infect the other countries in the so-called “fragile five” – Brazil, India, Indonesia and South Africa – sparked a rout on currency and metal markets.

The South African rand led the emerging markets sell-off, dropping more than 3pc against the dollar, while Indonesia’s central bank lifted interest rates for a fourth time in as many months to stave off a currency crisis.

Copper – a global growth bellwether – entered bear market territory, falling more than 20pc from its 52-week high, after the threat of strike action at BHP Billiton’s huge Escondida mine in Chile receded. BHP and the mine’s union will put a new pay deal to its workers in the coming days.

If ratified, the copper market will avoid the supply shock it endured last year when Escondida was put out of action for 44 days by strikes. Copper dropped 4pc to $5,801 a ton, a 14-month

low. As metals sold off, the FTSE 350 mining index hit a 2018 low.

Antofagasta shed 50.2p to 836.2p as its post-results slump continued, while

Glencore dropped 17.9p to 298.5p, a 13-month low, and

Anglo American sank 102p to £15.42, its worst level this year.

Already under pressure from growth jitters and the dollar hitting a 14-month high, a slide in oil prices was exacerbated by a surprise surge in US stockpiles.

Brent crude slumped as much as 3pc to $70.60 per barrel after stockpiles climbed at their fastest pace since March 2017. BP and Royal Dutch Shell “B” dropped 10.3p to 545p and 47.5p to £24.88, while

Premier Oil was the sector’s worst performer, sinking 9.6p to 108.6p.

The MSCI Emerging Markets index entered a bear market, while the commodity-heavy FTSE 100 closed 113.77 points down at 7,497.87, its lowest level since April. A shock drop in profit at Chinese internet giant Tencent added fuel to the fire, with the tech-heavy Nasdaq index leading the sell-off in New York. Elsewhere, drug maker

Glaxosmithkline was one of just seven stocks on the FTSE 100 to avoid the sell-off. Its shares were given a shot in the arm by positive results in a trial for its two-drug HIV treatment, boosting it 30.4p to £15.90. Pubs operator Mitchells

& Butlers jumped 1.4p to 248.6p after HSBC upgraded it to buy, citing “robust sales” and its investment programme.