Fresnillo rocked by profit levy

Heading into the close the FTSE 100 is up 33 points despite bad news for Fresnillo, as traders are still buoyed following Larry Summers' step away from the US Federal Reserve chairmanship race.

UK markets

Mexican miner Fresnillo is off 11% after the announcement of an increase in levy on profits by the Mexican government rocked the share price. 

Other equities have also been in decline since mid-morning, but are still up on the day, as traders express relief about Larry Summers' decision. Janet Yellen is now the favourite to take over from Ben Bernanke at the beginning of next year, and her previously dovish comments imply she is unlikely to curb the quantitative easing programme quite so quickly. Even though the US economy is strengthening, investors would rather keep the status quo when it comes to the stimulus package. 

US markets

The Dow is up 170 points at 15,545, as traders have high hopes for the two-day Fed meeting which begins tomorrow. Investors have braced themselves for some tapering between now and Christmas, but the question is how much and when? The $10 billion taper has been mentioned so often that if and when it comes to be it is not likely to command much of a reaction. Elsewhere, the cooling of the political situation surrounding Syria has encouraged traders to hop off the fence and go long.


Gold and silver are in the black as traders' risk appetite has increased; dealers are taking their money out of safe-haven metals and buying equities. Crude oil is losing appeal as dealers do not now foresee an invasion of Syria on the horizon. 


The US dollar is softer today as traders believe there will be little reduction in the QE scheme from the Fed on Wednesday. The Australian dollar is near a three-month high versus the US dollar, as traders await minutes from the Reserve Bank of Australia tonight.

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