January 14, 2015 / 8:32 AM / 4 years ago

UK's FTSE flops as fall in copper clobbers mining shares

* Miners and energy stocks fall as commodity prices drop

* Commodities hurt as World Bank cuts growth forecasts

* FTSE 100 down more than 1 pct

By Sudip Kar-Gupta

LONDON, Jan 14 (Reuters) - Britain’s top equity index slid lower on Wednesday, hit by a drop in mining and energy shares as global commodity prices tumbled after the World Bank cut its growth forecasts.

Late on Tuesday, the World Bank lowered its global growth forecast for 2015 and next year because of disappointing economic prospects in the euro zone, Japan and some major emerging economies.

The World Bank’s outlook put more pressure on commodity prices. Oil prices fell by more than 1 percent after touching their lowest level in nearly six years in the previous session. London copper prices hit a 5 1/2-year low.

Commodity stocks dominated among the worst-performing shares on Britain’s blue-chip FTSE 100 index, which fell 1.6 percent to 6,439.65 points.

Copper producer Antofagasta slumped around 10 percent and rival miner Glencore fell 7.4 percent. Oil majors BP and Royal Dutch Shell declined by 1.6 to 1.8 percent.

“We wouldn’t be buying the miners as yet. There’s still a question mark as to where the bottom is for these commodity prices,” said Dafydd Davies, partner at Charles Hanover Investments.

Alpari UK market analyst Craig Erlam said the retreat by commodity prices was offsetting optimism over the prospect of new economic stimulus measures, such as quantitative easing (QE), from the European Central Bank.

“It seems that in falling oil prices, quantitative easing has met its match with energy companies weighing heavily on any gains being made on QE expectations,” said Erlam.

The FTSE 100 hit a peak last year of 6,904.86 points, which marked its highest level since early 2000, but then lost ground towards the end of 2014. (Editing by Larry King)

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