Tuesday morning snapshot

A snapshot of the early morning's equity news and key market movements.

Last night’s US close: The Dow Jones closed down 70 points at 15,010; the NASDAQ  finished down 13 points at 3589; and the S&P 500 ended the day down nine points at 1646.

FX and commodities update: GBP/USD is down 12 pips at $1.5634; EUR/USD is down four pips at $1.3329; USD/JPY is down 33 pips at Y97.21. Brent crude oil is down 89 cents at $108.91; gold is down $7.70 at $1358.

London: The FTSE 100 is down 63 at 6401.

Latest news: Once again the FTSE is going to be driven by the mining sector today, and with another two of the larger miners posting disappointing figures and huge write-downs, the overall tone will be negative. Jitters will be felt by traders ahead of tomorrow night’s Fed FOMC minutes. Speculation has increased that we will see a $10 billion reduction to the US QE programme in its September actions.

Stocks: Glencore Xstrata has posted disappointing figures, weighed down with a larger-than-expected write-down of assets by $7.7 billion. BHP Billiton has also seen profits drop by over 30%; new CEO Andrew Mackenzie, who took up the role in May, has targeted an 18% cost-cutting exercise. Both shares are likely to suffer in early trading.

The day ahead: Once again there is a scarcity of economic data for the markets to absorb. The only thing out is monthly German PPI figures, which are weaker than expected.

All figures as at 8.30am (London time).


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