The FTSE 100 fell on Thursday as miners dropped considerably, with Rio Tinto – trading without entitlement to the dividend – being among the top decliners after it cut ties with Russian businesses.
The index (INDEXFTSE: UKX) slipped 0.5% in early trading and was down 1.1% at the close, with banks, insurers and miners leading losses.
Yields on UK bonds dropped, reversing their three-day winning streak and weighing banking shares down 2.4%.
“I think today is very much just kind of paying back some of yesterday’s outsize move. Yesterday’s gains were overdone – probably they were a technical reaction to European markets being deeply oversold and were due some kind of bounce,” said Neil Wilson, chief market analyst at Markets.com.
Energy shares also weighed on the FTSE 100, falling 0.7% with oil majors Shell and BP down 1.3% each, despite a rebound in oil prices.
London’s FTSE 250 was down 0.4%, weighed down by Volution and Capita.
Outsourcer Capita fell despite announcing it swung to a profit in 2021.