(Sharecast News) - London's FTSE 100 was down 1.7% at 5,862.09 in afternoon trade on Tuesday, dragged lower by a firmer pound.
Engine maker and dollar-earner Rolls-Royce slumped as sterling surged against the dollar, while British Airways and Iberia parent IAG flew lower after a downgrade to 'neutral' at JPMorgan.
On the upside, precious metals miners Fresnillo and Polymetal shone as gold prices advanced.
Edward Moya, senior market analyst at Oanda, said: "The gold consolidation period could be nearing an end as prices look to break back above the $2,000 level. This is a critical week for the outlook for fiscal stimulus in the US.
"Gold could sustain a sharper move higher if pressure grows for Capitol Hill to deliver a larger stimulus package. A deal will get done in Washington DC this month as government funding needs to be addressed before month end."
Miners Glencore, BHP, Antofagasta and Anglo American were also in the black following strong Chinese manufacturing data as China is a big consumer of metals.
FTSE 100 - Risers
Fresnillo (FRES) 1,331.00p 5.43%
Glencore (GLEN) 171.44p 1.34%
Polymetal International (POLY) 2,051.00p 1.13%
Avast (AVST) 540.50p 0.84%
Auto Trader Group (AUTO) 566.00p 0.50%
BHP Group (BHP) 1,721.00p 0.48%
Antofagasta (ANTO) 1,079.00p 0.47%
Rightmove (RMV) 636.60p 0.44%
Anglo American (AAL) 1,840.00p 0.40%
Smiths Group (SMIN) 1,400.00p -0.14%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 209.50p -13.11%
International Consolidated Airlines Group SA (CDI) (IAG) 200.20p -7.44%
Melrose Industries (MRO) 95.54p -6.15%
WPP (WPP) 608.80p -5.70%
Taylor Wimpey (TW.) 116.55p -4.86%
Informa (INF) 394.10p -4.67%
NATWEST GROUP PLC ORD 100P (NWG) 107.55p -4.65%
Barclays (BARC) 106.78p -4.63%
Schroders (SDR) 2,766.00p -4.55%
BAE Systems (BA.) 496.50p -4.45%
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