FTSE flat after mixed earnings

In London, the equity benchmark is broadly unchanged as a mixture of positive and negative updates leaves investors sitting on the fence.

The FTSE 100 has been drifting as the losses in the mining sector, which is off 2%, weigh on the rest of the market. Fresnillo, the Mexican silver and gold miner, announced a 58% drop in first-half profits, with the firm citing falling commodity prices as the reason for the drop. The stock is down over 6%.

Standard Chartered announced a 16% drop in first-half profits, but this was largely down to a £650 million write-down in its Korean business; excluding this, profits would have been up 4% compared with last year. The company is up 4.5% on the back of the announcement.

Lloyds is in the red due to profit-taking from yesterday’s rally. The bank hopes to pay out large dividends over the next few years.

In the US, we are expecting the Dow to open 20 points lower at 15,592. A smaller-than-expected trade deficit has been announced, which pushed US index futures off its lows.

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