Poor economic data weighs on FTSE

In mid-morning trading the FTSE 100 is down 50 points, at 6513, as poor German industrial production numbers set the tone for the day. 

City of London
Source: Bloomberg

Rio Tinto has rocketed 5% in early trading after the miner confirmed it rejected Glencore Xstrata’s proposed merger in July. Glencore courted Xstrata on and off for years before the merger was completed, which goes to show how persistent Glencore can be. Rio Tinto knocked back a takeover offer worth £90 billion from BHP Billiton in 2008; it is now worth £58 billion and I doubt Rio Tinto will want to make the same mistake twice. The broader mining sector is also reaping the rewards from the m&a story as takeover talks are never put to bed easily.

Ferrexpo managed to increase pellet production in its third quarter by 2.6%, but the turmoil in Ukraine has hindered the share price over the past six months.

Spirent Communications lowered its revenue forecast but traders are treating it as a full blown profit warning; the stock was sent tumbling 18%.

Recruitment consultant Robert Walters reported a 10% rise in third-quarter net fees. Its financial services division performed well which is a good barometer for the City.

In the US, we are expecting the Dow Jones to open 91 points lower at 16,900, as fears that the eurozone is stuck in a deflation cycle kick in. 

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.