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FTSE rises as demand for miners returns

In mid-morning trading the FTSE 100 is in positive territory as mineral extractors form the foundation to London’s rally.

City of London
Source: Bloomberg

Continental Europe is green with envy as it has been hit by profit-taking while the London equity benchmark has pushed higher. The belief that Beijing will begin a stimulus of sorts to spur on economic growth has left the relatively cheap mining companies in demand.

Eurozone equity markets are taking a pit stop before the next move higher as traders book their profits from yesterday’s mammoth gains.

Antofagasta shares are in the red after the Chilean copper miner posted disappointing results even though the market was expecting a decline in earnings. The company is battling weak copper prices and rising costs of production, but added to the mix was the disruption at the Los Pelambres mine which still casts an uncertain shadow over the company.

Sainsbury’s is struggling to swing back to sales growth despite slashing its prices on a wide range of products. The declining level of inflation is eroding the revenue stream and the company’s biggest fear is the UK slipping into deflation.

Investors have a healthy appetite for Just Eat shares after the firm revealed a 62% surge in twelve-month profits. The company’s decision to not pay a dividend has not deterred dealers as surplus cash will be ploughed into marketing and technology, which will help the company hit its revenue target of £200 million next year. 

Across the pond we are expecting the Dow Jones to open 60 points lower, at 17,917, as US index futures pullback while the Federal Reserve begins its two-day meeting today. The Fed statement tomorrow will be scoured for the word ‘patience’, and traders will be sitting on the fence until then. 

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