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. 

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.