The FTSE 100 has opened this morning at 6305, its lowest level this year.
On 6 January the FTSE 100 reached 6366 and in December last year it was below 6200.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said the fall is due to macro-economics, particularly concerns over China’s economy.
“The Chinese economy is slowing down which is affecting commodities, and mining companies make up a large part of the FTSE 100. If you look at the FTSE 250, it hasn’t got anywhere near the same problems as it hasn’t got international mining companies dragging it down.”
Oil and mining companies together make up around of a fifth of the UK’s benchmark index.
In March this year, the benchmark UK large cap equity index breached the 7,000 point mark for the first time in its history.
At that time, construction company CRH dragged the index higher, but the highest risers also included mining firms, oil and gas stocks and the UK listing of Coca Cola.
donia.o’loughlin@ft.com
