FTSE slumps as investors take profits

Heading into the close, the FTSE 100 is down 40 points and looks set to end the day around the 6654 level.

Miners under pressure

Reassurances from the Bank of England that interest rates will not be raised in a hurry could not convince traders to hold onto yesterday’s gains. Investors decided to secure their profits after a deal was struck between Iran and the west. The mining sector has lost nearly 2% and finds itself the weakest sector on the London market today, as softer metal prices are weighing on mineral extractors. European stocks are relatively strong after comments from Mr Coeure of the ECB hinted that negative interest rates could be used to get the region into shape.

US data boosts markets

US equities are a touch higher, after stronger-than-expected house price data and manufacturing figures signalled to traders that the Federal Reserve's stimulus package is paying dividends. The most recent updates from the Fed suggest that tapering is not imminent. Volatility and trading volumes are likely to be low this week, as the US celebrates Thanksgiving at the end of the week.

Gold downgraded

Gold suffered another knock today, after the investment bank UBS lowered its price forecast for the precious metal. I wouldn’t be surprised to see other finance houses following suit, given the year the metal has had.

Dollar suffers as QE continues

The US dollar is in the red versus other major currencies, as the US central bank is not showing any indications of tapering its QE scheme.

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