FTSE lags European markets as commodities are hit again

Emma Haslett
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Commodities have been dragged down in recent days (Source: Getty)

The FTSE 100 was the only European market not to make gains this morning, falling 0.25 per cent to 6,534 points, after China's decision to devalue its currency continued to hit commodities.

The index was pulled down by Randgold Resources, BP and BHP Billiton, as well as Glencore, whose share price fell 0.64 per cent to hit a fresh low of 171.7p in advance of its results on Wednesday.

Last week the mining giant, which listed in 2011 at 530p, announced plans to cut capital expenditure for the second half of the year by as much as $800m (£513m).

The company is expected to post results showing a net income of just $780m, down from the $2bn it made in the same period last year. The company has been hit hard by the Chinese devaluation, as well as plummeting prices of copper and oil, its main profit drivers.

Meanwhile, the FTSE was also dragged down by supermarket Morrisons, after stories in the press over the weekend suggested it was hatching a plan to sell off its convenience stores. Shares in the supermarket chain fell 0.81 per cent to 176.3p

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