Festive rally turns sour

The rally in indices has been stymied for now, with the FTSE 100 down slightly in mid-morning trading.

London Stock Exchange
Source: Bloomberg

Blink and you’ll have missed it, as the US interest hike feel good factor looks to have already evaporated. Historically, this has been the week in December when the benefits of the Santa rally can be enjoyed by equity investors. Uncertainty and indecision created in the run up to Wednesday has seen the boost equity markets would have hoped for turn out as more of a whimper than a bang, and last night’s Chinese 'Beige Book' has only sped up this turn around.

Aggreko has been the lead portable energy supplier to the last five Olympics and the last three World Cups, and it has just announced that it has pulled out of the bidding for the next Olympics in Rio 2016. Other than the Scottish Premier League, there are few things that are as comparable as a one horse race.

This development will raise serious concerns over Brazil’s ability to host this tournament – especially as if anyone else were to be awarded this work, they would probably have to subcontract both equipment and, arguably more importantly, managerial experience from Aggreko.

A glance at the list of FTSE stocks climbing the highest today warrants a second take, as it is dominated by  companies from the mining sector with perennial whipping boys Anglo American and Glencore at the fore.

Ahead of the open we expect the Dow Jones to start 122 points lower, at 17,373.

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