Weaker metal prices continue to weigh on UK markets today as miners like Antofagasta (LON:ANTO) and Fresnillo (LON:FRES) dragged the FTSE100 around 55 points, almost 1 percent, lower to 6,027.91.
Gold prices were around 0.3 percent lower, slipping US$4.20 an ounce to US$1,533 an ounce. Meanwhile silver remained under pressure dropping US$1.14 an ounce, or 2.74 percent, to US$40.52.
Base metal prices were also lower with copper, nickel and zinc sliding – losing 1.63, 1.88 and 1.41 percent respectively.
The impact of these intraday fluctuations were added to by disappointing production numbers from Antofagasta, whose first production report failed to meet expectations. By midday the miners shares had fallen almost 9 percent to trade at £12.14 each.
Fresnillo, the world’s largest primary silver producer, dropped around 5 percent today as the silver rally continues to be reined in. Earlier this week the New York Mercantile Exchange (NYMEX) upper the margin requirement for silver futures, prompting a round of selling among speculative investors.
Oil prices also fell as lingering demand worries came to the fore with market commentators predict rising crude oil stocks in the US. Later today the Department of Energy will announce its monthly stockpile data.
A number of oil and gas firms also featured among Wednesday’s losers, with BG (LON:BG.), Petrofac (LON:PFC) and Tullow Oil (LON:TLW) all dropping more than 2 percent.
Also microchip manufacturer ARM Holdings (LON:ARM) slipped 4 percent lower amid reports that Intel (NASDAQ:INTC) may be vying to become Apple’s (NASDAQ:AAPL) foundry chip supplier for its iPhone, iPad, and iPod products.
Elsewhere a handful of stocks bucked the trend. Notably UK retailers Next (LON:NXT), Marks & Spencer (LON:MKS) and Morrisons (LON:MRW) topped the leader board – rising 4.7, 3.1 and 1.5 percent respectively.
Financial software group Sage (LON:SGE) added another 2 percent to yesterday’s gains, while BT Group (LON:BT.) advanced 1.5 percent higher.
Attention will now turn to the United States where oil demand, employment and other economic reports are likely to sway equity markets one way or another.
US futures are pointing to a lower open on Wall Street, albeit by small margins.
Dow Jones futures are down 11 points at 12,738, S&P500 futures were down 1.9 points while the NASDAQ100 is down 4.5 points.