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London close: Stocks hit by Bullard comments as post-Fed rally fades

Fri, 20th Sep 2013 16:39

The exuberant post-Fed mood quickly faded on Friday with comments from one US policymaker dampening stocks before the close of trade.Risk appetite was also scaled back as caution set in ahead of the German elections at the weekend with the outcome still highly uncertain.The FTSE 100 finished 28.96 points lower at 6,596.43, a fall of 0.44% on the day.The Federal Reserve surprised analysts on Wednesday with the decision not to scale back stimulus, sparking a huge surge on global stock markets worldwide. After a broadly flat start this morning however, stocks sank into the red by the afternoon after the head of the St Louis Fed, James Bullard, said that the central bank could still taper quantitative easing at its next meeting in October. He admitted that this month's decision to maintain stimulus was a close call."This admission so soon after Wednesday's surprise has introduced an element of sogginess to today's afternoon trading with investors reluctant to take on any significant new positions ahead of the weekend, in what has been a fairly positive week for European equity markets," said Senior Market Analyst Michael Hewson from CMC Markets.Also on investors' minds today will be the looming elections in Germany this weekend, with the outcome still highly uncertain given that a rising euro-sceptic movement across the country could complicate things for Angela Merkel's CDU party. Chris Beauchamp, Market Analyst at IG said that the elections is "the only real cloud on the horizon now" and it would be a major upset if euro-sceptics made significant gains. He said: "Like most Europeans, Germans have had enough of the crisis and would rather not rock the boat, even if it is they that are underpinning the rescue and recovery efforts."FTSE 100: Miners track metal prices lowerFalling metal prices were weighing on mining stocks today as commodities pulled back after recent gains. Vedanta, Antofagasta, Fresnillo, Randgold, Anglo American and ENRC fell sharply as gold, silver and copper values took a hit.Food and sweeteners manufacturer Tate & Lyle was also a heavy faller after the stock's rating was cut by Credit Suisse from 'outperform' to 'neutral'. The bank said: "The long-running forward price-to-earnings multiple is 12 versus 13.5 today. That looks right to us."United Utilities was retreating after yesterday's strong gains, dragged down after Beaufort Securities lowered its recommendation to 'hold'.Banking stocks were also out of favour with domestic lenders RBS, Lloyds and Barclays among the worst performers. RBS, which announced this morning the sale of a further 20% stake in Direct Line Insurance, was being weighed down by comments by Investec which said that the third-quarter trading statement on November 1st "may (once again) prove to be a poor time to own the shares!"Heading the other way was supermarket chain Sainsbury after Citigroup upgraded the group to 'neutral' ahead of its second-quarter trading update in a couple of weeks. The bank said it expects a "big improvement" in like-for-like sales trends from the first quarter.BP was also making gains this morning on market chatter that US oil major Exxon could be interested in making a bid for its smaller rival. One analyst however suggested that these rumours should be taken "with a pinch of salt" perhaps as a result of light news flow on Friday. Pharmaceuticals group AstraZeneca rose after receiving a green light from European regulators for its nasal influenza vaccine for children.FTSE 250: Premier Farnell, ICAP hit by downgradesElectronic components distributor Premier Farnell was a heavy faller after yesterday's first-half report as Numis cut the stock to 'hold', outweighing a Cantor Fitzgerald upgrade to 'buy'.Interdealer broker ICAP was also trading lower after Bank of America Merrill Lynch downgraded the stock to 'neutral'. The group was also making headlines on reports that it could soon agree a settlement with regulators over the LIBOR rate-rigging scandal.Insurance firm Jardine Lloyd Thompson, meanwhile, was in demand after buying Towers Watson's reinsurance brokerage business for $250m.FTSE 100 - RisersShire Plc (SHP) 2,593.00p +2.01%Persimmon (PSN) 1,127.00p +1.44%GKN (GKN) 360.70p +1.41%Sainsbury (J) (SBRY) 396.40p +1.38%International Consolidated Airlines Group SA (CDI) (IAG) 328.60p +1.20%Pearson (PSON) 1,301.00p +1.17%Centrica (CNA) 402.20p +1.16%Reed Elsevier (REL) 845.00p +1.14%Johnson Matthey (JMAT) 2,878.00p +0.91%Schroders (SDR) 2,631.00p +0.88%FTSE 100 - FallersVedanta Resources (VED) 1,116.00p -4.37%Antofagasta (ANTO) 851.50p -3.89%Randgold Resources Ltd. (RRS) 4,676.00p -3.41%Fresnillo (FRES) 1,033.00p -3.37%Anglo American (AAL) 1,591.00p -2.69%London Stock Exchange Group (LSE) 1,558.00p -2.62%Tate & Lyle (TATE) 766.50p -2.23%Old Mutual (OML) 191.90p -1.89%Standard Chartered (STAN) 1,535.50p -1.82%Barclays (BARC) 273.45p -1.74%FTSE 250 - Risersesure Group (ESUR) 262.70p +5.08%Bwin.party Digital Entertainment (BPTY) 120.50p +3.97%Centamin (DI) (CEY) 45.50p +3.27%Jardine Lloyd Thompson Group (JLT) 942.00p +2.95%Playtech (PTEC) 739.50p +2.71%Cranswick (CWK) 1,189.00p +2.50%Kenmare Resources (KMR) 27.50p +2.23%Ted Baker (TED) 1,909.00p +2.19%Countrywide (CWD) 570.00p +2.15%Big Yellow Group (BYG) 425.60p +1.94%FTSE 250 - FallersAnite (AIE) 112.50p -6.64%Alent (ALNT) 340.00p -6.21%Britvic (BVIC) 554.50p -5.78%Premier Farnell (PFL) 215.20p -5.66%Vesuvius (VSVS) 432.20p -5.43%Polymetal International (POLY) 669.00p -5.17%Hochschild Mining (HOC) 202.40p -4.89%Daejan Holdings (DJAN) 3,652.00p -4.80%Lonmin (LMI) 332.00p -4.68%Tullett Prebon (TLPR) 352.50p -4.60%BC
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14 Aug 2013 07:24

London pre-open: Flat start expected ahead of data, MPC minutes

Markets are expected to open more or less flat on Wednesday as traders await a barrage of economic reports, including the minutes of the latest Bank of England policy meeting.   As well as the minutes, investors will look out for gross domestic product figures from across the Eurozone, unemployment

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14 Aug 2013 07:10

ENRC first half profit tumbles

Diversified mining group Eurasian Natural Resources Corporation reported a sharp drop in profit after trading was hit by a poor pricing environment, higher finance costs, increased effective tax rate and impairment at Boss Mining. The Kazakh miner said revenue during the half year declined by 1% to

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14 Aug 2013 06:10

Kazakh miner ENRC H1 profit falls 17 pct

LONDON, Aug 14 (Reuters) - Kazakh miner ENRC said on Wednesday its first-half underlying core profit dropped 17 percent, in what could be its final set of earnings as a listed company. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $944 million for

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12 Aug 2013 16:44

London close: Markets finish lower despite mining strength

Markets were choppy on Monday with early gains on the FTSE 100 being erased by the end of trade as traders reacted to mixed newsflow from Asia and Europe. Even a strong performance in the heavyweight mining sector wasn't enough to push the London benchmark into positive territory today, with Financ

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12 Aug 2013 15:35

Sector movers: Miners jump on Chinese stimulus hopes

Rumours of stimulus measures from top consumer China sparked some strong gains in the mining sector on Monday as stocks extended gains following last week's upbeat economic data from the Asian powerhouse. Traders were reacting to a report from the South China Morning Post (SCNP) which suggested tha

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9 Aug 2013 15:08

Sector movers: Chinese data boosts mining stocks

Upbeat economic data from China boosted share prices in the mining sector on Friday as the outlook improved for the world's top metals consumer. Miners were extending gains made on Thursday after Chinese trade figures were well received by the market with both imports and exports smashing forecasts

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8 Aug 2013 16:29

UPDATE 1-ENRC directors tell investors to "seriously consider" bid

LONDON, Aug 8 (Reuters) - ENRC's independent directors said on Thursday that a lack of alternatives and an imminent delisting meant shareholders should "seriously consider" an offer from its founders, despite a price they said undervalued the Kazakh mining company. A group including ENRC's

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8 Aug 2013 15:28

ENRC committee suggest shareholders consider offer

The committee of independent directors of Eurasian Natural Resources Corp (ENRC) has suggested shareholders should 'seriously consider' the offer from its founders despite grave reservations about the price. The independent directors lamented that the revised offer from a consortium of the company

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8 Aug 2013 14:23

Independent directors tell ENRC shareholders to consider bid

LONDON, Aug 8 (Reuters) - The independent directors of Kazakh miner ENRC said on Thursday that a lack of alternatives and an imminent delisting meant shareholders should consider a buyouy offer from its founders, despite a price they said undervalued the group. "Given the risks and uncertai

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8 Aug 2013 08:21

London open: Chinese trade data lifts markets after sell-off

Better-than-expected trade figures from China helped push markets in positive territory on Thursday morning but sentiment was still fragile following the heavy sell-off the day before. Concerns about a tapering of stimulus by the Federal Reserve and an underwhelming forward guidance statement from

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8 Aug 2013 07:10

Thursday broker round-up UPDATE

Aquarius Platinum: Investec places its target price (prev.: 46p) under review, while keeping its hold recommendation. Avocet Mining: Canaccord Genuity upgrades from sell to hold with an unchanged target price of 112p. BBA Aviation: Citi raises target price from 292p to 335p reiterating a buy recom

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7 Aug 2013 19:33

UPDATE 1-ENRC founders say could sell international assets

* ENRC shareholders have until Aug. 28 to accept offer * Bidders include trio of founders, government of Kazakhstan * Assets include Mozambique coal, Brazil iron ore, Congo copper By Clara Ferreira-Marques LONDON, Aug 7 (Reuters) - The founders of Kazakh miner ENRC , biddi

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7 Aug 2013 14:50

Bidders for miner ENRC say could sell international assets

LONDON, Aug 7 (Reuters) - The founders behind Kazakh miner ENRC, bidding to buy out minority investors, said in an offer document published on Wednesday that they could sell some of the group's international assets after a "thorough strategic review". Eurasian Resources, a group of bidders

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7 Aug 2013 07:28

London pre-open: Falls expected ahead of BoE's inflation report

Markets are expected to open firmly in the red on Wednesday morning ahead of the Bank of England's inflation report, the first under the governorship of Mark Carney.   The Governor, who took over from Mervyn King in early July, is expected to unveil forward guidance today in an attempt to convince c

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7 Aug 2013 07:18

ENRC sees Q2 production increase across the board

Diversified mining group Eurasian Natural Resources Corporation (ENRC) saw production increase across all its major commodity classes in the three months ended June 30th with iron ore having its best quarter for three years. Iron ore extraction totalled 10,874 thousand tonnes (kt) in the second qua

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