Mining shares pull FTSE 100 lower

  • 27 March 2015
  • From the section Business
Trader in London

(Close): Shares in mining companies pulled the FTSE 100 lower after iron ore prices slid sharply on fears of oversupply.

Prices of iron ore futures fell by up to 4% early on Friday, before recovering some ground. Anglo American fell 3.02% and Glencore dropped 3.05%.

The benchmark FTSE 100 index fell 40.31 points to 6,855.02.

The price of oil fell as fears eased that the Saudi-led airstrikes in Yemen on Thursday could disrupt supplies.

Crude prices had jumped on Thursday following news of the airstrikes, but on Friday Brent crude futures fell 2.2% to $57.92 a barrel, while West Texas Intermediate crude also dropped 2.6% to $50.09.

The fall in the oil prices lifted shares in airlines, with Easyjet up 1.14%.

Shares in housebuilder Barratt Developments fell 0.19%, after saying group finance director, David Thomas, would be its next chief executive. The firm's current chief, Mark Clare, is to step down after nine years in the job.

On the currency markets, the pound was lifted by comments from Bank of England governor Mark Carney.

At a discussion at a Bundesbank conference in Frankfurt, Mr Carney said the next move in UK interest rates "is going to be up".

The pound rose 0.30% against the dollar to $1.4895, while against the euro, sterling was unchanged at €1.36580.