Stocks slip after yesterday’s surge

Equity markets are trading sideways as traders don’t know which way to look after the rally yesterday.

In London, the equity benchmark has been drifting between positive and negative territory throughout the trading session. The surprise decision by the US Federal Reserve to keep the bond buying scheme unchanged pushed stocks higher yesterday, but now traders are undecided whether to keep buying or take some profits.

The mining sector is in the red as a stronger US dollar has impacted the price of commodities. Traders are also looking ahead to Monday’s HSBC Chinese manufacturing report; if the report is weak we could see mining stocks open lower still on Monday morning.

The Royal Bank of Scotland announced the selling of an 18% stake in Direct Line Insurance for £630 million. This is the latest move by the part-nationalised bank to offload non-core assets. The stock is trading at 363p, down 1.3%.

In the US we are expecting the Dow to open ten points lower at 15,626; some dealers are cashing in their chips after the recent bull run.

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