Miners drag FTSE down

In mid-morning trading the FTSE 100 is down 40 points as miners drag market sentiment lower.

Mineral extractors are suffering today as falling metal prices underline how weak global demand is. A drop in non-manufacturing from China and additional cash injections from the People's Bank of China are worrying signs. The British homebuilders are still offside even though the latest UK construction data smashed estimates, while today's building report vindicates Mark Carney's comments that Funding for Lending needs to be diverted towards small businesses.

Banking stocks are feeling the pinch after Royal Bank of Scotland suffered IT glitches yesterday on one of the busiest shopping days of the year. This isn’t the first time the Edinburgh-based bank has suffered system problems. 

HSBC has had its rating cut by Nomura. 

European traders failed to be impressed by surprisingly good employment data from Spain, as they are still dwelling on poor manufacturing figures released yesterday. 

In the US, we are expecting the Dow Jones to open 30 points lower at 15,978, as traders are fearful of tapering.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.