U.K. Stocks Drop; Anglo American, BHP Billiton Lead Declines

By Adam Haigh and Daniela Silberstein

Aug. 15 (Bloomberg) -- U.K. stocks fell as a drop in copper prices pushed mining shares lower. Anglo American Plc and BHP Billiton Ltd. led the retreat.

British Airways Plc climbed the most in a week as crude headed for its second consecutive weekly decline, boosting the earning outlook for travel and leisure companies.

The FTSE 100 lost 44.5, or 0.8 percent, to 5,452.9 at 12:36 p.m. in London, bringing its drop this week to 0.7 percent. The FTSE All-Share Index fell 0.7 percent today. Ireland's ISEQ Index climbed 0.9 percent.

Anglo American, the world's fourth-largest diversified mining company, slid 4.9 percent to 2,779 pence, while BHP Billiton, the biggest mining company, declined 3.8 percent to 1,522 pence. Copper retreated 1.8 percent to $7,250 a metric ton in London. Nickel, tin and zinc prices also slid.

British Airways, Europe's third-largest airline, rose for the first time in four days, adding 1.5 percent to 257.5 pence.

``If oil prices continue to soften, then further gains may be within reach,'' said Paul Webb, chief dealer at CMC Markets in London.

Oil fell today after the dollar strengthened and Europe's economy contracted. The stronger dollar diminishes the appeal of commodities as a hedge.

Crude for September delivery dropped as much as 1.6 percent to $113.20 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.netDaniela Silberstein in Zurich at dsilberstei2@bloomberg.net.