There has been a disappointing performance across banks, energy and mining stocks this morning
City Index July 30, 2012 10:17 PM
<p>Much like British sport this weekend, there has been a disappointing performance across banks, energy and mining stocks this morning leaving the FTSE 19 points […]</p>
The video cannot be shown at the moment. Please try again later.
- Much like British sport this weekend, there has been a disappointing performance across banks, energy and mining stocks this morning leaving the FTSE 19 points down at 5640.
- The Cac and the Dax have also had tough mornings down 0.43% and 0.14% at 3157 and 6400 respectively.
- Looking across to America, after disappointing non-farm payroll results on Friday and news from the IMF that it was looking to cut its global GDP growth forecast Wall Street ended the day 124 points down at 12772.
- Back in the UK Major British banks had a good start to the day although as the morning has gone on they have been unable to sustain this with the biggest swing being Barclays up 1.3% in early trading but now down 1.14% with directors apparently considering spinning of Barclays investment banking arm – Barclays Capital – and floating it in New York.
- Other big loser today are luxury retailer Burberry, down 1.8% on further China slowdown fears and miner Lonmin who continue their slide after CIBC lowered their price target for it and cut it to sector performer from outperformer.
- Looking at the bigger picture we have no major economic data out today although the ECB President Mario Draghi is speaking to the European Parliament at 1.30pm where he may drop clues as to future monetary policy and likewise we have the Deputy Governor of the bank of England Paul Tucker speaking at 4.30pm.
- The Libor Scandal is still very much a current topic and the focus is now moving towards politicians and officials (including aforementioned Paul Tucker) and the extent of their knowledge of what was going on. This spreading of the blame may ease things somewhat for Barclays.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.