U.K. Stocks Decline as Oil, Metals Drop; BP, BHP Billiton Slide

By Sarah Jones

Aug. 8 (Bloomberg) -- U.K. stocks fell for a second day as a drop in oil and copper's slump to a six-month low damped the profit outlook for commodities producers.

BP Plc, Europe's largest oil company, fell the most in more than a week. BHP Billiton Ltd., the world's biggest mining company, extended its biggest weekly drop since May.

The FTSE 100 Index lost 0.6 percent to 5,446.9 at 1:18 p.m. in London, trimming this week's gains to 1.7 percent. The FTSE All-Share Index slipped 0.4 percent, while Ireland's ISEQ Index added 0.3 percent.

BP lost 2.3 percent to 520 pence. BHP fell 2.8 percent to 1,507 pence.

Crude oil for September delivery sank 2.3 percent to $117.23 a barrel on the New York Mercantile Exchange, as demand dropped and the dollar gained, reducing the appeal of commodities as an inflation hedge.

Copper retreated 2.8 percent to $7,450 a metric ton on the London Metal Exchange, while zinc plunged to the lowest in more than two years in London on signs a slower global economy will curb demand for industrial metals.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.