FTSE drops for second straight day

<p>The index is down 2.6 per cent so far this year.</p>

On Tuesday (October 27th), the FTSE 100 fell for a second straight day and cyclical shares lost ground following concerns over economic growth in some countries.

At 09:00 GMT, the blue-chip FTSE 100 index was down 0.3 per cent at 6,395.27 points. It also fell 0.4 per cent on Monday and the index is down 2.6 per cent overall this year.

The oil and gas sector fell 0.5 per cent and the UK mining index was down one per cent. Shares in commodities companies also dropped.

In addition, investors are avoiding strong bets in anticipation of a two-day US Federal Reserve meeting, which begins later today – although the US's central bank is not expected to change rates until later this year.

Commenting on the results, equity strategist Robert Parkes told Reuters that resources were "under pressure" and that there was "continued uncertainty" in regards to the outlook for global growth.

"There is also some caution ahead of the Fed meeting. We are not expecting a rate hike until December and even then it’s a close call," he added.

Market movements

Defence specialist Chemring dropped 35 per cent after the firm said it expected its underlying operating profit for the year to be down by nearly a third. The company said this was due to a delay in revenues from a contract in the Middle East.

Following a third round of spending cuts and more asset sales, BP rose 1.6 per cent. It is hoped the cuts will help to deal with the extended period of low oil prices. The firm also said it had maintained its dividend, following better-than-expected third-quarter results – specifically in underlying replacement cost profits.

Equities expert Richard Hunter said the long-term outlook for the oil and gas giant remained positive, despite recent challenges. "Investors are certainly being paid to wait - the current dividend yield is extremely punchy given the current interest rate environment and is a particular attraction to those seeking income," he explained.

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