FTSE 100 falls below 6500

The FTSE 100 has drifted below the 6500 level as investors look to take profits, as growth prospects for China weigh on the base materials and mining sector.

The slashing of global growth forecasts by the IMF yesterday and news that Chinese imports and exports missed expectations by a massive margin has dented sentiment to a degree today. With the minutes of the FOMC meeting due out this evening, there is a distinct element of caution to be felt in early trade as investors await further information about US monetary policy. The compunction to take on risk ahead of Ben Bernanke’s speech is likely to thin on the ground as the day progresses.

The Italian bourse has lagged behind its European counterparts while the country’s bond yields edge higher, owing to the credit rating downgrade from Standard and Poor's. The timing for the downgrade, which places Italy’s rating just two notches above junk with a negative outlook, is certainly unfortunate timing given that the country is to sell €9.5 billion in short-term debt today. Italy's cost of borrowing has now hit a four-month high. This, coupled with the European Central Bank stating what has been patently obvious to many, that the eurozone crisis is not yet over, is also keeping a firm cap on excessive optimism.

Luxury brand Burberry has announced double-digit profit growth, showing that the strategy for diversification of products is working. Investors shrugged off any concerns over Chinese demand, choosing to focus instead on the potential increase in western spending, sending the shares higher by as much as 5% in early trade. However the usual volatility associated with earnings day for the company has seen the shares pare back early gains. The Dow Jones is currently looking to open down 30 points at 15,270.

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.