Pressure from supermarkets pushes Ftse 100 further into the red

London’s top-flight index sunk deeper into the red as it came under pressure from sliding commodity stocks and a slump from the supermarkets.

Pressure from supermarkets pushes Ftse 100 further into the red

The Ftse 100 index fell 73.6 points to 6,112.02, as the falling copper price and a slip in Brent crude took its toll on the mining sector.

Glencore was 4.8p lower at 145.1p, while Anglo American tumbled 22.5p to 643.2p, as the price of oil dropped 0.3% to $44.83 a barrel.

Commodity stocks also bore the brunt of Tuesday’s manufacturing update from China, which showed activity shrank for the 14th month in a row in April, sparking investor concern that its consumption of commodities will begin to fall.

Sainsbury’s was more than 6% down after it reported a hit to annual profits triggered by the long-running supermarket price war.

The retailer — which last month won a four-month takeover tussle to snap up Argos owner Home Retail for £1.4bn — booked a 13.8% drop in underlying annual profits and a 0.9% fall in like-for-like sales.

Rival Tesco also saw it share price tumble after the latest industry report from Kantar Worldpanel showed its market share had fallen to 28%, down 0.4% in the 12 weeks to April 26, while sales fell 1.3% to £7.12bn.

Shares were down more than 5% or 9.2p to 160.1p.

Across Europe, the Cac 40 in France was 1.1% lower, while Germany’s Dax fell just under 1%.

The London Stock Exchange (LSE) also fell heavily — down 113p to 2576p — after the owner of the New York Stock Exchange, the Intercontinental Exchange (ICE), said it would not pursue a takeover.

The move paves the way for a £20bn merger between LSE and Germany’s Deutsche Borse, which ICE had threatened to gatecrash.

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