CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

More bad news from miners and banks

Mid-morning trading sees the FTSE 100 40 points lower, weighed down by poor numbers from the banking and mining sectors.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Miners at work
Source: Bloomberg

Optimism is in short supply in London this morning, as investors labour through disappointing figures from key names, while keeping an anxious eye on the Fed meeting this evening. RBS’s ability to surprise investors with fresh bad news has been one of the hardy perennials of the past six years, and yet still the news keeps coming.

George Osborne’s decision to sell a chunk of the government’s stake last August, which was derided at the time, now looks like a sound financial decision, but it does mean any further sales are essentially off the table. Coincidentally, with Lloyds down 2% this morning in sympathy, it seems the government will remain a key asset manager when it comes to UK banks.

Also on the slide today was Antofagasta, which missed production targets for the past year. The usual protestations about increased cost-cutting have not gone down well with investors, who continue to watch as miners dig themselves into deeper holes without any sign the current dire situation is about to change.

Apple’s earnings last night failed to excite, with warnings about slowing iPhone sales reminding markets that, for all its innovations, the firm is still essentially dependant on its iconic smartphone for its daily bread. If this falters, no amount of modest growth in iPad or Watch sales will help.

All eyes turn to the Fed meeting this evening, as the divergence between the Fed’s and the market’s view of interest rates gets wider. Ahead of the open, we expect the Dow to start at 16,049, down 118 points from Tuesday’s close.  

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.