Commodities and Carney direct FTSE

Market report Emma Newlands

London’sblue-chipindexsankaftercommodity stocks took a battering following a sharp drop in the price of oil.

The FTSE 100 Index closed down 51.1 points at 7,472.71, with the mining giants bearing the brunt of the sell-off as Brent crude slid 2.5 per cent to $45.74 a barrel.

Chilean copper miner Antofagasta was the biggest faller on the London market, down by 37p to 755.5p after rising oil output in Libya and Nigeria left traders fearing that Opec-led production cuts would have little impact on the global supply glut. Glencore also took a hit, dropping 11.4p to 276.6p, while oil majors Royal Dutch Shell B and BP were off 49.5p to 2,125.5p and 12.4p to 460.3p respectively.

The oil price slump had shifted the top flight into a reverse following a morning rally triggered by dovish comments on UK interest rates by Bank of England governor Mark Carney.

On the currency markets, the pound was struggling in response to Carney’s Mansion House speech in which he argued against a hike in the cost of borrowing. Sterling was down 0.9 per cent versus the US dollar at $1.261 and 0.7 per cent lower against the euro at €1.134.

In UK stocks, Barclays dropped 3.95p to 202.8p after the lender and four former top bankers were charged with fraud over sidedeals struck during its emergency fundraising at the height of the financial crisis.

The biggest risers on the FTSE 100 Index included Paddy Power Betfair up 135p to 8,660p and Astrazeneca up 72p to 5,416p. The biggest fallers included BHP Billiton down 39p to 1,140p and Next down 124p to 4,024p. The specialist fashion retailer sewed up gains after saying in a first-quarter update that trading for the full year is set to meet its expectations. The pizza delivery business fell, with Investec having initiated coverage on the firm with a “sell” rating, saying challenges include rising competition.