FTSE in the red

The FTSE 100 Index was stuck firmly in the red today as stocks trading in commodities such as oil and copper found few friends in the market.

Investors responded to oil prices falling to their lowest level for nearly six months by selling shares in BP and Royal Dutch Shell, while miners were affected by analysts talking of a bubble in the copper market.

With fears of higher interest rates in the United States also casting a pall, the FTSE 100 Index retreated 30.2 points to stand at 5460.8 by mid-morning.

Royal Dutch Shell was the heaviest faller in the oil sector after the cost of crude briefly dipped below 56 US dollars a barrel, slipping 22p to 1887p.

Major rival BP joined it on the way down – off 3.5p to 638p – but Cairn Energy resisted the sell-off to advance 5p to 1840p.

The biggest riser of the session was Daily Mail & General Trust which gained 11% after it surprised the City by announcing it was considering the sale of its regional newspapers arm Northcliffe. Shares were 76.5p higher at 752.5p.

Investors liked the news that British Airways is to cut 35% of its management by March 2008 and the weaker oil price, sending the carrier up 1.25p to 313p.

Stronger profits in France compensated for fresh downbeat words on the outlook for B&Q as retail group Kingfisher lifted 3% or 6p to 226.25p.

But miners were unable to make headway as investors questioned whether the recent inflation of metals prices was nearing a peak.

Anglo American suffered the most, falling 36p to 1834p, and BHP Billiton dropped 9.5p to 874.5p.

Outside the top flight, steel group Corus jumped more than 6% or 3.25p to 55.5p as it posted third quarter results ahead of expectations and forecast a continued improvement in prices next year.