Mining companies Antofagasta, Anglo American and BHP Billiton fell 2.1 to 1.8 percent as copper prices dropped towards six-year lows. Weak oil prices also weighed on the shares of BP and Royal Dutch Shell, down 1.2 and 1.6 percent respectively. Oil and metals companies have come under pressure after China, a major commodities consumer, devalued its currency last week, fuelling fears about its economy. "Brent crude has dropped below $50 a barrel and China, the world's largest exporter, is potentially now unleashing a new wave of deflationary forces around the world through the devaluation of its currency," said Peter Cameron, associate fund manager at EdenTree Investment Management.
"In this context it's unclear why the Bank of England would consider raising rates anytime soon, even after today's inflation figures," he added. Among mid-caps, oil explorer Cairn Energy dropped 7.3 percent, hurt by a wider after-tax loss in the first half of the financial year. Bucking the trend for commodity stocks, Glencore closed up 3.7 percent for the day. The company said it may close its Eland platinum mine in South Africa because of falling prices.
Also on the upside, pharmaceuticals group Shire rose 1.6 percent. The company's U.S-listed shares rallied towards the end of trading overnight to end up off their intraday lows, as the Nasdaq Biotech Index rising 2.1 percent on Monday. The FTSE 100 has given up the gains it made earlier in the year, and is currently roughly flat for 2015.
-Reuters