Oil and mining stocks end FTSE's rally

In mid-morning trading the FTSE 100 is down 12 points at 6622, as natural resource stocks drag the index into negative territory. 

Mining truck
Source: Bloomberg

In London, oil and mining stocks have put an end to the FTSE 100’s week of gains. The market is running on empty as we approach the end of the trading week, and if the downward pressure continues it could finish below the 6660 mark.

Restaurant Group served up a 10% increase in 45-week sales, but investors sent it back as revenue growth has been dwindling since August and simultaneously costs have been creeping higher; shares in the owner of Frankie & Benny’s were sent sliding six percent.

Temporary energy power provider Aggreko saw its shares surge 4% in early trading, after the Scottish-headquartered company maintained its full-year guidance despite the unfavourable moves in the currency markets.

Tullow Oil has found itself underwater again as the company’s cost-cutting plans to offset collapsing oil prices has failed to compel investors. It would appear that the Irish oil exploration firm is fresh out of luck!

The supermarkets are continuing their comeback, and traders are adding Tesco and Sainsbury’s to their shopping baskets ahead of the Christmas run.

In the US, we are expecting the Dow Jones to open up ten points higher at 17,662 as it seems there is no stopping the US benchmark.

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