FTSE 100 hits lowest level in over a week

The blue-chip FTSE 100 index closed 0.8% lower, its biggest one-day drop in two weeks

The UK's benchmark FTSE 100 dropped on Tuesday to the lowest levels in over a week, hurt by a steep sell-off in commodity-linked stocks over lower metal and crude prices.

The blue-chip FTSE 100 index closed 0.8% lower, its biggest one-day drop in two weeks. The domestically focused mid-cap FTSE 250 also shed 0.8%, hitting its lowest levels in three weeks.

The precious metal miners reached near one-month low with a 3.7% decline, as gold prices dropped on a firm dollar.

Heavyweight industrial metal miners touched almost six-month lows with a 3.4% decline. The index was pressured by the lowest copper prices in around two weeks, driven down by worries that a weak Chinese economy is curbing demand.

The oil and gas index slid 2.9% to its lowest levels since March after crude prices declined following a media report of a potential end to a dispute in Libya, weighing on the supply-demand ratio.

The personal care, drug and grocery stores index led gains with a 1% jump, helped by a 3.1% gain in online supermarket and technology group Ocado, while retailer Tesco advanced 1.6% on a price target upgrade from UBS.

Watches Of Switzerland Group climbed 6.3% after the company said it is on track to deliver its full-year forecast, taking the personal goods index up 0.4%.

Rolls-Royce advanced 1.7% after Hong Kong's Cathay Pacific Airways noted that the three of the 48 British engine supplier's planes under inspection went through successful repairs and all of the jets were expected to resume operation by Saturday.

Meanwhile, British home prices are expected to gain significantly over the next two years, outpacing inflation.