FTSE 100 flirts with 6500 level

The London market is bouncing between positive and negative territory with traders unsure which way to turn.

Equity markets were spooked earlier this morning after rumours circulated that missiles were detected in the eastern Mediterranean – reports suggested that Israel were undertaking testing, but stocks recovered some of the earlier losses.

Rio Tinto has loaded the first shipment of iron ore from its expanded operation in western Australia. The mining company has increased iron ore production, believing that Chinese demand is still high. Rio had climbed 1.3% at lunchtime.

Vodafone is one of the biggest losers on the FTSE 100 today, as traders take profit from the previous two days of gains. The share price is off 4%. British Gas owner Centrica rose 1.2% to 394p after an upgrade from Deutsche Bank. The German finance house raised its target price to 430p.

We are expecting the Dow Jones to open 100 points higher at 14,910, with US index futures given a boost by yesterday’s global equity markets.

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