FTSE slips back as miners hit

UK blue chip shares fell following the Bank Holiday weekend as investors locked in profits from miners.

Early gains, led by firms in the pharmaceuticals sector, gave way with the FTSE 100 index trading down more than 1% to 4,856.16 at about 9.45am.

Investors locked in profits from mining companies, which have been in favour recently, reflecting a rebound in confidence in the global economy.

Eurasian Natural Resources lost more than 5% to 819p, while Lonmin fell 4.8% and Kazakhmys and Antofagasta were both off more than 4%.

Insurance firm RSA was also hit, dropping 4.4% to 124.9p after newspaper reports over the weekend suggested it is considering a £600m rights issue.

A sell-off in Chinese shares on Monday hit sentiment on Wall Street overnight, sending the main Dow Jones index 0.5% lower to close at 9,496.4.

Meanwhile, Japan's Nikkei 225 index finished ahead, up 0.4% to 10,530, while China's Shanghai Composite index, fresh from a dramatic 6.7% dive yesterday, and the Hang Seng in Hong Kong both closed in positive territory.