Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
In mid-morning trading, the UK’s blue-chip index is experiencing a minor hiccup.
Profit-taking in the mining sector is apparent today as investors swarm to lock-in profits following yesterday’s positive performance by mining stocks.
Xstrata‘s announcement this morning that it will not make a bid for rival Anglo-American has also knocked the FTSE, with Anglo American the biggest faller so far on the blue-chip index.
Cairn Energy, Royal Dutch Shell A and B and Anglo American have all taken a hit, slipping between 1.6% and 3.1% at 9.50am. But, despite the 15.5-point (0.3%) fall the FTSE remains comfortably above the 5200 mark.
A surge higher looks imminent, especially after the Dow crossed 10,000 for the first time in a year yesterday.
Financial markets are expected to continue riding the earnings wave in the US as investors delight in the positive results. Today, Citigroup, Goldman Sachs, Google and IBM are the big fish to keep an eye out for in the US earnings pond.
The banking and technology sectors could likely get a strong shot-in-the-arm during afternoon trading at home, should these companies post positive results later today.
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