FTSE 100 plunges sharply as copper prices fall

FTSE 100 Index, British benchmark stock market gauge, Wednesday dropped by 2.35 percent, or 153.74 points, to 6,388.46.

Copper prices dropped 4.6 percent on Wednesday as investors worried about global economic outlook. The plunge of copper price weighed on mining sector, the London stock market declined sharply.

The World Bank cut global economy growth forecasts of this year to 3 percent from 3.4 percent. Copper price, as a barometer of global economic demand, declined largely as the gloomy economic outlook.

Economic data from the United States was not good. Retail sales in the United States recorded the sharpest monthly decline in 11 months in December as consumer pulled back spending.

The U.S. Commerce Department said on Wednesday retail sales fell 0.9 percent in December, 2014 after a 0.4 percent increase in November.

Royal Mail's share price increased by 1.47 percent, topped the gainers of the blue chips. Tesco, Hammerson, BT Group and Aviva increased by 0.94 percent, 0.64 percent, 0.40 percent and 0.12 percent percent respectively.

Glencore led the top losers of the blue chips with a share price drop of 9.28 percent, followed by Anglo American (8.99 percent), Coca-Cola HBC AG (6.06 percent), BHP Billiton (5.31 percent) and Intertek Group (5.04 percent).

The index has decreased 2.70 percent so far this year when measured in U.S. dollar. Endit