02.02.202608:36:46UTC+00FTSE 100 Falls Led by Commodity-Linked Stocks

On Monday, the FTSE 100 index declined by approximately 0.4% as significant dips in metal prices negatively impacted mining stocks, pulling the index down despite gains seen in defensive sectors. The widespread selloff in commodities affected miners universally, and oil giants also saw declines as crude oil prices lowered. Specifically, Glencore experienced a 3.3% drop, while Rio Tinto faced a roughly 2% decrease. Both companies were under pressure as discussions about a potential major merger extended, needing more time to reach consensus on valuation. Additionally, gold miner Endeavour fell by 7.4%, and Fresnillo dropped 7.6% as precious metal prices also moved downward. Companies with copper exposure, such as Antofagasta and Anglo American, suffered declines of around 5.4% and 3.5%, respectively. These miner weaknesses overshadowed gains in defensive sectors, with Unilever advancing over 2%, AstraZeneca increasing by 0.7%, British American Tobacco rising 0.8%, Relx gaining 0.9%, Diageo adding 0.8%, National Grid rising 0.7%, and Compass Group climbing by 1.5%.