LONDON: UK shares fell on Thursday as investors dumped shares in British retailer Next and a decline in commodities prices put pressure on mining companies and oil majors.
Although it met its latest profit guidance, Next plunged nearly 9 percent after warning that 2016 could be its toughest year since 2008, as it anticipated a more difficult economic environment.
"Their results were ok but their forward outlook isn't so great.
Being a growth company that's highly leveraged as well, the minute it turns south, it turns south aggressively," Manoj Ladwa, head of trading at TJM Partners, said.
The stock is set for its biggest daily loss since December 2008.
The FTSE 100 index was down 1 percent at 6,135.08 points by 0908 GMT, in line with the broader European market.
A fall in commodity-related stocks also put pressure on the blue-chip index, with the mining sector dropping 3.8 percent and the oil and gas index down 1.7 percent as the prices of metals and oil waned.
A rise US crude stockpiles to another record weighed on oil prices, threatening their recent rally.
British oil majors BP and Royal Dutch Shell fell 1.4 percent and 1.8 percent respectively.
A higher dollar sent copper prices lower after a US Federal Reserve official said on Wednesday that the central bank should consider an interest rate hike as early as next month.
Miners Anglo American, Glencore, Rio Tinto , Antofagasta and BHP Billiton all fell bewteen 3.3 percent and 6.4 percent as dollar-priced metals became more expensive for holders of other currencies.
Schroders, Prudential and Sky all fell after going ex-dividend, taking around 5 points of the FTSE 100.
Among mid-caps, precision engineer Renishaw plummeted over 12 percent after cutting its full-year outlook, citing a lack of large orders from the Far East this year.
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