Commodities drive FTSE down as the weekend approaches

The stronger dollar continued to dominate movements on London''s FTSE 100 index, pushing down oil prices to the benefit of airlines and retailers but hitting commodity companies.

In the end, it was the weakened commodities markets that dominated the blue chip index, pushing it down over 40 points to close at 5,454.80.

Website marketwatch.com explained that "losses sustained by mineral extractors and producers pulled London shares into the red Friday", before noting that both gold and silver futures dropped on the "dollar''s latest move higher".

One of the biggest losers was mining concern Kazakhmys, which shed seven per cent to close at 1,173.00.

Anglo American also tracked lower today, eventually losing 188 points to finish the week at 2,735.00.

However, the falling prices of oil helped retailers and airlines, with Marks & Spencer up nearly four per cent and Next adding over two per cent to close at 1,037.00.

Banks also enjoyed a better day on the back of falling oil prices. It was hoped that cheaper oil could reduce inflationary pressures and lead to interest rate cuts.