The commodity-focused FTSE 100 slid 0.1 per cent and closed 3.8 per cent lower for the month, marking its worst monthly performance since May
Britain’s FTSE 100 finished October on a gloomy note on Tuesday dragged down by commodity-linked stocks with oil giant BP leading declines after it reported lower than expected quarterly earnings.
The commodity-focused FTSE 100 slid 0.1 per cent and closed 3.8 per cent lower for the month, marking its worst monthly performance since May.
BP shares slipped 4.6 per cent, to the bottom of the FTSE 100 after the oil firm missed Q3 earnings estimates, hurt by a big decline in energy prices from a year earlier.
While the firm (BP) seems to be continuing its so called ‘performing while transforming’ strategy, there seems to be a growing concern that the current strategy is neither transforming nor performing, Michael Hewson, chief market analyst at CMC Markets UK said in a note.
Shares in peer Shell dropped 1.5 per cent, with the wider oil and gas index 2.5 per cent lower on the news.
Industrial metal miners slipped 1.3 per cent, tracking lower base metal prices as demand concerns resurfaced following weak manufacturing data from top consumer China.
Capping losses, the aerospace and defence index added 1.8 per cent, led by a 6.6 per cent increase in Rolls Royce to the top of the FTSE 100 after Barclays raised the stock to overweight from equal weight.
The mid-cap FTSE 250 increased 0.4 per cent, but dropped 6.5 per cent in October, marking the worst month for the index in more than a year.
In the meantime, industry data showed prices in British store chains increased at the slowest pace in over a year in October. The data comes before the BoE’s policy meeting on Thursday at which it is expected to keep interest rates steady.