Mining sector remains weak

In mid-morning trading the FTSE 100 is down 20 points, as as the mining sector is still fragile after the slump yesterday on the back of Chinese trade figures. 

The Asian powerhouse is depending too heavily on credit for its growth, but who will fill the gap when their appetite for metals falls?  

Traders are reluctant to go long on banks as they play wait-and-see for the Crimea crisis to play out; the possibility of a war is forcing dealers to remain on the sidelines. 

The grey market on the Poundland IPO is now indicating a market capitalisation of £1.06 billion; this is a healthy premium above the £750 million IPO value. The recent success of Twitter and Royal Mail flotations, and record highs in global equity markets, has encouraged a flurry of market listings, including Pets at Home. Our clients are indicating a market capitalisation of £1.57 billion for the specialist retailer on our grey market, as they anticipate that the market will trade higher on the day of the flotation. 

Foxtons has pleased its shareholders by not only posting a 57% rise in profits but also announced a special dividend. Foxtons know all too well the benefits of floating on the stocks market; the share price has risen steadily since their float over 18 months ago. 

In the US, we are expecting the Dow Jones to open five points lower at 16,390 as traders take their profits. 

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