NEW YORK: U.K. stocks slumped Tuesday, pacing a continued rout in commodity shares as miner Anglo American PLC said it is suspending dividend payments as a part of a sweeping restructuring plan that includes slashing half its workforce.
Meanwhile, the pound fell below $1.50 after data showed a bigger-than-expected decline in monthly manufacturing output in the U.K.
The FTSE 100 UKX, -1.42% lost 1.4% to end at 6,135.22. According to FactSet data, the index closed at its lowest level since Nov. 13.
Anglo American PLC AAL, -12.29% shares tumbled more than 12% to finish at £3.24 ($4.86), hitting a fresh all-time low as it outlined sweeping restructuring plans that include not paying a dividend through 2016 and cutting capital spending by another $1 billion through next year. As well, Anglo plans to cut more than half of its workforce.
Meanwhile, the U.S. oil benchmark CLF6, +1.87% on Tuesday slumped under $37 a barrel while Brent crude LCOF6, +1.32% undercut the $40 mark, but they both recently traded back in positive territory. In turn, shares in oil major BP PLC BP., +0.06% BP, +0.03% finished up 0.1% after erasing losses, while Royal Dutch Shell PLC RDSB, -0.03% RDS.B, -1.08% closed down less than 0.1%.
More on miners: After Anglo’s dividend move “the question is whether we are set to see a rush of others doing the same to protect balance sheets in the face of tanking material prices and much reduced demand,” said Mike Van Dulken, head of research at Accendo Markets, in a note.
