By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Losses for resources stocks such as Rio
Tinto PLC and travel-related stocks like TUI Travel PLC and
International Consolidated Airlines SA weighed on London stocks on
Monday.
The FTSE 100 index fell 1.5% to 5,859.13. Across Europe,
regional indexes were falling on a renewed bout of sovereign-debt
worries, with Greece and Italy both under pressure after moves by
credit-rating firms.
Shares of resources stocks were putting the key index under
pressure, with Antofagasta PLC down 3.7%, Anglo American PLC losing
3.7% and Kazakhmys PLC off 3.4%. Shares of heavyweight Rio Tinto
(RIO) fell 2.5%.
Gold futures were trading slightly higher, while copper and
silver prices were lower as the dollar rose against the background
of sovereign- debt worries for Europe. A stronger dollar makes gold
and other dollar-denominated commodities more expensive and
therefore less attractive to holders of other currencies.
Airline and travel-related stocks were sharply lower after
Grimsvoetn, Iceland's most active volcano, began erupting late
Saturday. U.K. officials reportedly said ash could reach domestic
U.K. airspace by Tuesday. It was just a year ago that the eruption
of nearby Eyjafjoell caused widespread chaos, shutting down
European airspace for days.
TUI Travel PLC fell nearly 4%, while International Consolidated
Airlines Group SA slid 3.4%.
Away from the main index, shares of easyJet PLC tumbled 5%. The
company said David Michels, deputy chairman and senior independent
director, will step down from the board at the end of 2011 and
easyJet would begin looking for a successor.