Metal demand sees mineral sector rise

In mid-morning trading the FTSE 100 is broadly unchanged as Greek woes are weighing on the market.

Iron ore
Source: Bloomberg

The London market is doing its best to not be pulled into the red like its continental counterparts. The natural resources sector is providing a boost to the British market as metals are in demand this morning.

Eurozone equity markets are bearing the brunt of the Greek concerns, and as the cost of borrowing for the indebted nation soars the fear of a default is on the rise. On the surface, it might appear that traders are not particularly worried about a Greek default, but if it wasn’t for the European Central Bank’s quantitative easing scheme the equity markets would be in absolute turmoil.

Shares in Debenhams are on the rise after the company stated it is on track to achieve its full-year expectations. The online delivery division delivered double-digit growth in the first half and this was the driving force behind the company’s recovery. Today’s update from Debenhams will help the share price break out of the downward trend that it has been in for over two years.

Diageo shares have taken a tumble this morning as the drinks company’s third-quarter revenue figures missed analysts’ estimates. Diageo experienced soft sales in its developed markets, and a significant drop-off in the emerging markets proved to be a dangerous cocktail.

Persimmon described the start to the year as ‘encouraging’, but with the success of the homebuilders recently the company is either deliberately downbeat about performance or it is genuinely starting to cool off.

In the US, we are expecting the Dow Jones to open ten points lower, at 18,100, as the profit-takers were quick to move on the mildly dovish beige book from the US. The US reporting season continues with announcements from Goldman Sachs and Citigroup today, and the banks’ trading revenue and legal costs will be under scrutiny.

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.