Commodities tumble while pharma stocks rise

Both base and precious metals have sold off today as the pessimism over struggling demand intensifies.

Source: Bloomberg

The appeal of mining companies has become increasingly difficult to see, as increasing production levels coupled with dwindling demand has given little reason to believe a bounce in the sector will soon materialise.

The performance of oil today would suggest that regardless of how uncomfortable OPEC members might be with the current oversupply to the markets, change is not anticipated.

Saudi Arabia looks unwilling to change from this current template and today’s oil inventories oversupply has just given fresh impetus to the bears ahead of OPEC’s Vienna meeting. The writing has been on the  wall for some time and overnight the decision will be made on Meggitt, G4S and Morrison’s eligibility to stay in the FTSE 100.

The pharmaceutical sector has done its best to drag the FTSE higher with Shire, GlaxoSmithKline and AstraZeneca making up the bulk of the best performing equities.

As successful as European Central Bank president Mario Draghi may have been in talking down the euro, his sheer will power alone has failed to prevent the eurozone inflation picture from becoming even worse.

The ADP employment date has never been the most reliable indicator ahead of Friday’s non-farm payrolls but the better-than-expected figures, along with the improved revision from the previous month, has given fresh power to GBP/USD as today’s moves have seen it smash through the psychological $1.500 barrier with consummate ease.

With Federal Reserve chair Janet Yellen yet to talk and the latest Fed Beige book due for release tonight, the selloff could still see lower lows.

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.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

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.