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>
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- 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.
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