Mining rout propels FTSE lower

Heading into the close the FTSE has fallen over 100 points, as miners and Rolls-Royce lead a broad-based rout.

Canary Wharf, London
Source: Bloomberg

The week continues to see more losses for equity indices, with the FTSE 100 registering a sharp fall. A stronger dollar has put commodity prices on the back foot, which has translated into the usual weakness for miners in London, but Glencore has once again commanded attention, falling 9% on the day.

The firm is back below 100p per share, as investors read across from rival Noble Group’s abysmal results, factor in the poor Chinese data from earlier in the week and draw their own conclusions. Glencore’s sole consolation is that it is hardly alone, with Anglo American hard on its heels and all the other big names in the red too.

Rolls-Royce is being heavily punished as it broaches the  touchy subject of dividend payouts for shareholders, with oblique comments in its results this morning being taken as advance warning of potential cuts. This would leave investors with even fewer reasons to hold the shares; the shares are down by 50% over the past six months, but there appears to be no sign of bargain hunting just yet.

Mario Draghi continues to render the December European Central Bank meeting almost meaningless, as he drops increasing hints about more QE for the eurozone. While this helped to push the euro down once again, it did little for stock markets on the continent, which were more in tune with the US session.

The afternoon was dominated by a host of speeches by Fed policymakers, including the chief herself, and while Janet Yellen offered little, FOMC members Bullard and Lacker both reinforced the prevailing impression that the world’s most important central bank was increasingly comfortable with the idea of a December move. As a result, we saw the dollar pare losses, while the sell-off on Wall Street gathered  pace. 

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.