UK production performs as expected

Equities in London are tiptoeing between positive and negative territory this morning.

While the FTSE is up 10 points at 6569 after UK industrial and manufacturing production met expectations, mineral extractors are offside after mixed Chinese data last night, when Beijing announced a jump in retail sales but it was offset by a slip in industrial production. Year-to-date the FTSE 100 is up over 11% while the mining sector is off over 18% over the same period. The uncertainty surrounding Chinese demand is the main factor behind divergence between the two. 

Lloyds has made early morning gains after disposing of its remaining stake in wealth manager St James’s Place. This a continuation of its asset-stripping scheme, as the indebted bank cuts away non-core assets and gets back to basics. 

TUI Travel has managed to recoup losses made since Norwegian investor John Fredriksen offloaded his position in the travel company at the end of last month. Today’s positive results will make it less of takeover target.

In the US we are expecting the Dow Jones to open 15 points higher at 16,040, extending gains from last night's rally. 

This information has been prepared by IG, a trading name of IG Markets 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.