FTSE higher after mining sector upgrade

In mid-morning trading the FTSE 100 is 15 points higher, lifted by a general rise in mining sector shares.

The uneventful end to the weekend referendums in Ukraine and an upgrade to the mining sector from JPMorgan, have helped investors start the week in a sunnier frame of mind. While the more positive end to the US session on Friday is also helping markets to hold around their current levels.

Tensions in Ukraine have not gone away, but traders will be relieved that there has not been a sudden rush by any of the involved parties to praise or condemn the outcome. That might change over the coming days, but for now the quiet reaction has been gratefully received. The major question now is whether we can sustain these gains – earnings have failed to do it and dovish central bankers aren’t having the impact they once were. The search for a narrative to push us out of the current trading range goes on.

A fresh record high for the Dow Jones is an encouraging sign, but the real test of market appetite will be whether the index can close above 16,600 in the coming days. The short-term rally from the February lows remains intact, but the consistent inability of the index to finish above 16,600 is becoming something of a worrying sign. The below-par earnings season is the key element holding this market back, an indication that investors are still adjusting to a world of lower earnings growth. 

Ahead of the open, we expect the Dow to start eight points higher at 16,591.

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.