FTSE still down after FOMC

Heading into the close the FTSE 100 is down 50 points since Janet Yellen spooked the equity markets. 

British banks under pressure

The possibility of economic sanctions being imposed on Russia by the west could lead to a tit-for-tat economic war. 

Crumbling copper prices have dragged the mining sector lower; weaker demand from China is prompting the slide in mineral extractors. 

Next reported a double digit increase in yearly profits, as the fashion house hopes to overtake Marks & Spencer in terms of value. It is already a more profitable company than the supermarket giant. 

Traders are gorging themselves on IPO’s. Alibaba is on track for record stock market flotation; our clients are indicating the Chinese e-commerce giant will have a market capitalisation of $250 billion. When you 

consider Facebook floated for $100 billion, we could have a new IPO king. Just Eat hopes to raise between £700 and £900 million from its stock marketing listing, but our clients are indicating a market capitalisation of £1.2 billion. 

Equities pull back losses

In the US the Dow Jones is up 37 points at 16,260, as equities pull back some of the losses incurred after last night's Federal Reserve update. Traders are starting to realise that Ms Yellen is letting the market know that quantitative easing and rock bottom interest rates won’t last forever. A rise in US interest rates may happen sooner than initially thought, but we are still a long way from the prospect. 

Copper down YTD

Copper is down 13% year-to-date as questions loom over China’s appetite for the red metal. 

Dollar makes headway

The dollar has gained ground versus the euro and pound as the Fed reveals it is eyeing up an interest rate rise, even if it is not for some time. 

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.