Tuesday morning snapshot

A snapshot of the early morning's equity news and key market movements.

Last night’s US close: The Dow Jones closed down 70 points at 15,010; the NASDAQ  finished down 13 points at 3589; and the S&P 500 ended the day down nine points at 1646.

FX and commodities update: GBP/USD is down 12 pips at $1.5634; EUR/USD is down four pips at $1.3329; USD/JPY is down 33 pips at Y97.21. Brent crude oil is down 89 cents at $108.91; gold is down $7.70 at $1358.

London: The FTSE 100 is down 63 at 6401.

Latest news: Once again the FTSE is going to be driven by the mining sector today, and with another two of the larger miners posting disappointing figures and huge write-downs, the overall tone will be negative. Jitters will be felt by traders ahead of tomorrow night’s Fed FOMC minutes. Speculation has increased that we will see a $10 billion reduction to the US QE programme in its September actions.

Stocks: Glencore Xstrata has posted disappointing figures, weighed down with a larger-than-expected write-down of assets by $7.7 billion. BHP Billiton has also seen profits drop by over 30%; new CEO Andrew Mackenzie, who took up the role in May, has targeted an 18% cost-cutting exercise. Both shares are likely to suffer in early trading.

The day ahead: Once again there is a scarcity of economic data for the markets to absorb. The only thing out is monthly German PPI figures, which are weaker than expected.

All figures as at 8.30am (London time).

 

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.