FTSE 100 Hovers Near Six-week Lows

(RTTNews) - U.K. shares hovered near six-week lows on Monday as fears of an imminent U.S. rate hike gripped world markets. Bond yields rose in the U.S. and Asia, and commodities slumped on a firmer dollar amid fears that central banks may be running out of ammunition to boost economic growth.

The benchmark FTSE 100 was down 101 points or 1.49 percent at 6,676 in midday trading after declining 1.2 percent in the previous session.

Commodity stocks remained under broad selling pressure, with Anglo American, BHP Billiton, Glencore, Royal Dutch Shell and Tullow Oil losing 2-5 percent.

Shares of Associated British Foods plunged almost 8 percent. The company warned that Primark's margins would be affected by currency movements following Britain's decision to quit the European Union.

Aberdeen Asset Management fell 2.5 percent. The company announced today that it had been advised by the Financial Conduct Authority to increase the required minimum level of capital that should be held for regulatory purposes.

Aircraft engine maker Rolls-Royce Holdings dropped over 2 percent after appointing Simon Kirby as its chief operating officer.

On a relatively light day on the economic front, the British Chambers of Commerce today downgraded its growth projections for the U.K., citing weak consumer spending and a large reduction in investment.

It now expects the economy to grow 1.8 percent this year, down from its March estimate of 2.2 percent. The sequential growth in the third and fourth quarters of 2016 is forecast to slow down to 0.1 percent each.