Miners weigh on FTSE 100

The mining sector is in the red this lunchtime, dragging down the benchmark index.

In London natural resource stocks are weighing on the overall market, after China released a manufacturing purchasing managers index (PMI) report below analysts’ expectations, of 51.6, at 51.1. The HSBC Chinese manufacturing PMI report yesterday also missed estimates.

The US government has begun its partial shutdown after the Democrats and Republicans proved unable to reach an agreement over the budget. Traders have shrugged off the deadlock as unlikely to affect the US credit rating.

In corporate news, Unilever issued its first profit warning for ten years. The multinational consumer goods company stated that third-quarter sales growth will come in between 3-3.5%, which compares with growth rates of 5% in the previous two periods. The stock is down 3.8%.

Wolseley revealed a 138% increase in full-year pre-tax profit. The plumbing and building supply group is returning £300 million to shareholders in the form of a special dividend, and the stock is up 2%.

In the US we are expecting the Dow to open 25 points higher at 15,154, as US index futures regain some of last night’s losses.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.