Miners drag FTSE down

In mid-morning trading the FTSE 100 is down 40 points as miners drag market sentiment lower.

Mineral extractors are suffering today as falling metal prices underline how weak global demand is. A drop in non-manufacturing from China and additional cash injections from the People's Bank of China are worrying signs. The British homebuilders are still offside even though the latest UK construction data smashed estimates, while today's building report vindicates Mark Carney's comments that Funding for Lending needs to be diverted towards small businesses.

Banking stocks are feeling the pinch after Royal Bank of Scotland suffered IT glitches yesterday on one of the busiest shopping days of the year. This isn’t the first time the Edinburgh-based bank has suffered system problems. 

HSBC has had its rating cut by Nomura. 

European traders failed to be impressed by surprisingly good employment data from Spain, as they are still dwelling on poor manufacturing figures released yesterday. 

In the US, we are expecting the Dow Jones to open 30 points lower at 15,978, as traders are fearful of tapering.

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