UK’s FTSE 100 drops on steep slump in commodity-linked stocks

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By Khushi Singh

(Reuters) -The UK’s benchmark FTSE 100 tumbled on Tuesday to the lowest levels in over a week, hurt by a steep sell-off in commodity-linked stocks over lower metal and crude prices.

The blue-chip FTSE 100 index ended 0.8% lower, its biggest one-day decline in two weeks. The domestically focused mid-cap FTSE 250 also lost 0.8%, touching its lowest levels in three weeks.

The precious metal miners touched near one-month low with a 3.7% fall, as gold prices eased on a firm dollar. [GOL/]

Heavyweight industrial metal miners hit near six-month lows with a 3.4% fall. The index was pressured by the lowest copper prices in nearly two weeks, driven down by concerns that a weak Chinese economy is curbing demand. [MET/L]

The oil and gas index slipped 2.9% to its lowest levels since March after crude prices dropped following a media report of a potential end to a dispute in Libya, weighing on the supply-demand ratio. [O/R]

The personal care, drug and grocery stores index led gains with a 1% jump, helped by a 3.1% rise in online supermarket and technology group Ocado, while retailer Tesco added 1.6% on a price target upgrade from UBS.

Watches Of Switzerland Group jumped 6.3% after the company said it’s on track to deliver its full-year forecast, taking the personal goods index higher by 0.4%.

Rolls-Royce rose 1.7% after Hong Kong’s Cathay Pacific Airways noted that the three of the 48 British engine supplier’s planes under inspection went through successful repairs and all of the jets were expected to resume operation by Saturday.

Meanwhile, British home prices are expected to rise significantly over the next two years, outpacing inflation. However, affordability for first-time buyers may improve due to anticipated lower borrowing costs, according to a Reuters poll.

(Reporting by Khushi Singh, Ankika Biswas in Bengaluru; Editing by Sonia Cheema and Jonathan Oatis)