LONDON MARKETS: FTSE 100 Dragged Down By Miners After Rio Tinto Swings To Loss

By Sara Sjolin, MarketWatch

Randgold rallies as investors hunt for havens

U.K. stocks slumped on Thursday and headed for their lowest close in three-and-half years as investors dumped anything considered a risky asset amid a renewed global selloff.

The FTSE 100 index dropped 2.1% to 5,551.13, setting it on track for its lowest close July 2012, according to FactSet data.

The slide came after a late-session selloff in the U.S (http://www.marketwatch.com/story/dow-futures-up-100-points-as-markets-wait-for-yellen-to-speak-2016-02-10). and after stocks in Hong Kong plunged on the return (http://www.marketwatch.com/story/hong-kong-stocks-sputter-and-fizzle-as-market-reopens-2016-02-10) of trading after the Lunar New Year break.

Another downbeat day for oil (http://www.marketwatch.com/story/crude-shrugs-off-supply-decline-pushes-below-27-a-barrel-2016-02-11) further weighed on sentiment, as the price of West Texas Intermediate crude fell below $27 a barrel.

Rio Tinto PLC (RIO) (RIO) (RIO) led the long list of decliners in London, down 6.5% after swinging to a loss in 2015 (http://www.marketwatch.com/story/rio-tinto-swings-to-annual-loss-scraps-dividend-2016-02-11). The miner also scrapped its progressive dividend policy, citing a weakening global economy and a sharp decline in commodity prices.

Among other miners, shares of Glencore PLC (GLEN.LN) (GLEN.LN) gave up 4.7% after the commodities titan reported lower fourth-quarter (http://www.marketwatch.com/story/glencore-copper-zinc-production-falls-on-cutbacks-2016-02-11) copper and zinc output.

BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) erased 4.9%, and Anglo American PLC (AAL.LN) fell 3.9%.

On a more upbeat note in the commodity space, precious metals miners advanced as the renewed market panic sent traders hunting for safe havens such as gold . Shares of Fresnillo PLC (FRES.LN) jumped 5.2%, while Randgold Resources Ltd. (RRS.LN) (RRS.LN) climbed 4.6%.

Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) gave up 2.5%, tracking the slump in oil prices. The oil major said it has it has canceled a 10.07 billion pound (http://www.marketwatch.com/story/shell-cancels-144-billion-bridge-credit-facility-2016-02-11) ($14.4 billion) bridge credit facility to pay for its takeover of BG Group PLC (BG.LN) as it is now able to fund the deal from its own cash resources.

Outside the main benchmark in London, shares of Thomas Cook Group PLC (TCG.LN) dropped 3.2% after the travel company said total winter bookings were down 2% (http://www.marketwatch.com/story/thomas-cook-bookings-fall-but-loss-narrows-2016-02-11).

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(END) Dow Jones Newswires

February 11, 2016 04:05 ET (09:05 GMT)

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