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.