FTSE 100 watch: Footsie eases as risk-off sentiment weighs on miners

on Apr 25, 2016

The UK benchmark index has started the week on the back foot, led lower by mining and energy shares with lower oil prices and concerns about China’s economy weighing on investor sentiment. Imperial Brands (LON:IMB) has bucked the trend following an upgrade at Goldman Sachs.

As of 12:33 BST, the FTSE 100 had slipped 36 points to stand 0.57 percent lower at 6,274.44. The blue-chip index has been led lower by miners, with Anglo American (LON:AAL) having posted the biggest losses in percentage terms so far today, having shed 5.85 percent to 689.90p.
“There’s a little bit of trepidation now as to how confident people are in emerging markets,” Augustin Eden, research analyst at Accendo Markets, told Reuters. “A lot of this rally has been built on renewed confidence in China and maybe a feeling that, fundamentally, the declines we have seen up until the end of January were potentially overdone.”

A pullback in the oil price meanwhile has pressured energy groups BP (LON:BP ) and Royal Dutch Shell (LON:RDSA). BP’s share price is 2.27 percent worse off at 359.96p, while Shell’s shares are changing hands 2.59 percent in the red at 1,767.00p.
At the other end of the spectrum has been Imperial Brands, whose shares have spiked after analysts at Goldman Sachs turned bullish on the stock, lifting their rating from ‘neutral’ to ‘buy,’ following recent underperformance of the stock. The analysts noted that upcoming catalysts include the group’s first-half results on May 4 and the Investor Day on June 8. Imperial Brands’ share price currently stands 2.91 percent higher at 3,675.50p.
**The FTSE 100 index was 0.68 percent down at 6,267.71 points as of 12:51 BST on April 25, 2016.**

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