FTSE 100 watch: Miners drag Footsie down as caution continues

on Dec 3, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Tuesday, December 3: The FTSE 100 index has declined today with mining stocks leading the sell-off pressured by weak metals prices and investor worries that the US Federal Reserve might begin scaling back its stock market-friendly monetary stimulus as early as this month.

**FTSE 100 under pressure as miners decline**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
As of 11:33 UTC, the UK’s benchmark had dropped 52.26 points to be 0.79 percent down at 6,543.07.
Chilean copper miner Antofagasta (LON:ANTO) has been the top faller, shedding 5.52 percent to 737.44p. Randgold Resources (LON:RRS) has been another standout loser, with shares diving 3.85 percent to 3,997.00p. Vedanta Resources (LON:VED) has so far today given up 1.80 percent to 844.00p whereas shares in silver miner Fresnillo (LON:FRES) are currently trading 3.16 percent down at 736.00p.

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Global miner Rio Tinto (LON:RIO) dipped 1.30 percent to 3,188.88p after saying that it would halve its capital spending by 2015. Shares in peer BHP Billiton (LON:BLT) have eased 1.48 percent to 1,795.00p.
“Pressure on stock markets will continue today,” Alessandro Fezzi, a senior market analyst at LGT Bank Schweiz AG, told Bloomberg. “For now, market participants are waiting for new indications regarding the reduction of the Fed’s stimulus, which the upcoming economic data will provide.”

Yesterday, data showed the US manufacturing sector had expanded at its fastest pace in over two years in November, fuelling speculation that the central bank is close to paring its $85 billion of monthly bond purchases. Investors are now eyeing the US non-farm payrolls report due on Friday.
Reuters quoted Farhan Ahmad, a trader at Tradenext, as seeing the Footsie “declining slowly if commodity prices continue to fall”.

“It has not been a massive correction and I see it continuing in that vein unless we see something major to the contrary,” Ahmad added.

**FTSE 100 winners**
One of the top Footsie risers today has been William Hill (LON:WMH) whose shares are currently trading 2.03 percent higher at 388.73p. The bookmaker rose with Numis analysts adding the stock to their ‘top picks’ portfolio. Reuters quoted the analysts as explaining that while a poor run of sporting results had undermined profitability and the share price, this was “not a structural issue and, in our view, it has created a buying opportunity”.

Smith & Nephew (LON:SN) gained 2.03 percent to 829.50p. As Bloomberg reported, Morgan Stanley raised its recommendation on the medical device maker from equal weight to overweight citing the possibility of new orthopaedic products stemming the company’s market-share loss.
Among the few Footsie winners today have been retailers that were assisted by the British Retail Consortium reporting that online sales of non-food products picked up in November. Next (LON:NXT) gained 2.20 percent to 5,518.60p and Sports Direct (LON:SPD) edged 0.74 percent higher to 749.00p.
**The FTSE 100 was 0.77 percent down at 6,544.85 points as of 12:55 UTC on 3 December 2013.**
Trade stocks with Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.

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