What Santa rally? FTSE 100 falls below 6,000 mark

The FTSE 100 has fallen below the 6,000 mark in intraday trade for the first time in 10 weeks.

The blue chip index last hit 5,909 on September 29, when shares in Glencore plunged after a broker warned the stock could become worthless if commodity prices continued to fall.

^{FTSE slips below the 6,000 mark in intraday trade.}

The rand plunged to a record low in the previous trading session after President Jacob Zuma dismissed Nhlanhla Nene as finance minister.

While there were already concerns about the barely growing South African economy, Rebecca O’Keeffe, of Interactive Investor, said it might be in “an even more precarious position than previously thought”. Shares in Anglo African financial services group OId Mutual have fallen by almost 20pc since the announcement, while South African bank Investec is down 22pc since Wednesday.

The FTSE 100 was also weighed down by mining stocks, amid renewed fears about the state of the Chinese economy. The mining sector has been hammered by a global rout in commodity prices this year, which has put miners under increased pressure to slash capital expenditure.

Weak data from China and a slide in the yuan did little to settle sentiment this week. The yuan tumbled to its lowest level in four and a half years amid a slump in oil prices, which fell below the $40 a barrel mark this week.

Anglo American plunged 7.3pc, Glencore was 5.5pc lower and BHP Billiton tumbled 5.3pc.

• Anglo American overtakes Glencore to become FTSE's worst performer

Since hitting a high in April of 7,104, the FTSE 100 has fallen by 15.8pc.

Although the issues currently worrying investors are likely to carry over into the new year, such as lower commodity prices and dividends being cut, Richard Troue, of Hargreaves Landsdown, said the UK stock market looked “reasonably valued at current levels” for long-term investors.

Ahead of a highly anticipated interest rate rise by the US Federal Reserve next week, shares across the globe tumbled to a near two-month low. The MSCI world equity index, which tracks shares in 45 countries, fell for a fifth consecutive day.

Investors clutching to hopes of a late-December Santa rally will be left disappointed by the latest move in financial markets.