FTSE 100 in a Commodities Crash: Mining Stocks Take the Sucker
On Tuesday, the FTSE 100 slid 2.1 % to 5,691, mainly because mining shares went from raining glory to tumbling into the Red Zone.
Mining Mania Turns into Mining Malaise
- BHP – down by more than 5%
- Evraz – also fell 5+%
- Anglo American – another 5‑plus drop
- Royal Dutch Shell – shares slipped, reflecting oil concerns
- BP – same story, declining as demand doubts creep in
Brent Drips, WTI Keeps the Heat
Brent crude fell a staggering 10 % to $22.97, fueled by worries over buyers and storage limits. Yesterday’s wild WTI jump left traders scrambling, so the market is picking up a grim re‑echo.
Asia & Europe Join the Red Parade
Asian stocks followed Wall Street’s lead, wiping out roughly 2 % in Hong Kong and Japan. Meanwhile, Europe’s markets weren’t spared either.
Why the Risk Appetite Declined
A sharp drop in oil futures sent shockwaves through broader financial arenas, causing investors to tighten their belts. In a bizarre twist, May‑delivery oil futures traded at nearly –$40, forcing traders to actually pay others to take on the commodity.
Takeaway
Mining stalwart there are losing steam; oil’s price spiral is raising red flags for all commodities. Keep your eyes peeled and your risk appetite trimmed—let’s hope the next week brings a brighter outlook.
