FTSE 100 falls as Next shares dive

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(Close): Shares in retailer Next led the FTSE 100 lower after the company warned of a "challenging year" ahead.

Next shares dived nearly 15%. The firm reported a rise in annual profits, but said the year ahead "may well be the toughest we have faced since 2008".

Next was the biggest faller on the FTSE 100, with the index down 92.63 points, or 1.49%, at 6,106.48.

Its comments hit shares in other High Street retailers, with Marks and Spencer down 4.9%.

Mining shares were hit as the prices of metals and oil fell. Shares in Anglo American fell 4.3% while Glencore dropped 1.5%. Both companies recovered some of their losses from earlier in the session.

Oil prices continued to slide on news of rising US stockpiles. Brent crude fell 0.6% to $40.22 - having at one point fallen below the $40-a-barrel mark to $39.65.

On the currency markets, the pound was up 0.19% against the dollar at $1.41450, while against the euro it rose 0.32% to €1.441.