Mining stocks pull down FTSE

Big-hitting miners dragged the London market into the red today, ending the Footsie’s upbeat start to the year.

The FTSE 100 Index slipped 50.6 points to 6268.7 by mid-morning as mining stocks shed as much as 5% because of tumbling metal prices.

Traders were also in downbeat mood after minutes from the Federal Reserve’s latest meeting refreshed concerns about the strength of the American economy.

Eight of the top ten fallers were from the mining sector after copper dipped below 6,000 US dollars a tonne yesterday and there was weakness in the cost of aluminium, tin and gold.

Xstrata topped the fallers board as it lost 117p to stand at 2300p, while Vedanta Resources was close behind – down 54p at 1104p – and BHP Billiton slid 42p to 891p.

However, there were some chinks of light for investors as retailers bounced back following a flush of positive trading statements.

Next said profits were likely to be slightly ahead of expectations after a strong performance from its Directory catalogue and internet arm. Shares climbed 4p to 1851p, even though sales remained under pressure on the high street.

Marks & Spencer cheered 7.5p to 743.5p and Argos-owner Home Retail Group was up a quarter of a penny to 415p as retailers put to bed the notion of a severe Christmas on the high street.

But the best performing stock was Cable & Wireless, which jumped more than 3% - or 5.25p to 166.75p – following positive market sentiment sparked by a meeting between the company and stockbroker Investec.

Meanwhile, shares in Newcastle United dropped almost 9% – or 7p to 73.5p - after the Polygon-backed St James’ Park Group consortium said it had no current intention of bidding for the Premiership club.