LONDON (Alliance News) - London's main stock indices are all trading close to flat, as markets stabilise following Thursday's equities rally fueled by the US Federal Bank's decision not to reduce its monthly USD85 billion in quantitative easing.
Investors took a step back from the equities markets Friday. Markets are trading at such high levels that several market commentators say value appears to be lacking.
By mid-morning, the FTSE 100 is flat at 6,627.73, the FTSE 250 is up 0.1% at 15,148.6, whilst the AIM All-Share is performing slightly better, up 0.4% at 792.74, having reached 793.54, a high for 2013, earlier in the day.
At the individual stock level, mining companies are being hit by the decreasing price of gold as the yellow metal falls 0.8%, at USD1355.70 per ounce, having jumped on the Fed news. Randgold Resources, down 2.6%, and Fresnillo, down 2.3%, are two of the biggest fallers on the blue-chip index. Similarly, Hochschild Mining, down 3.2%, and Polymetal International, down 2.2%, are big losers on the FTSE 250.
On its first day of trading, Foxtons has flourished, seeing its share price increase 21% to 278 pence, pushing the value of the firm to GBP784 million.
Nyota Minerals share price continues to rocket, up 58%, as traders anticipate a near-term take-over or joint venture after the company's major shareholder, Centamin, Thursday launched an attempt to oust Nyota Chief Executive Richard Chase.
The pound currently trades down at USD1.6029, dropping in the aftermath of reports that public sector net borrowing excluding temporary effects of financial interventions was GBP13.2 billion, below the GBP14.4 billion seen during the same period of last year, in line with consensus forecasts according to FXstreet.com.
In the data calendar, EU consumer confidence is scheduled for 1500 BST, whilst post-embargo speeches from individual FOMC members begin with Esther George and James Bullard after the European market close.
By James Kemp; jameskemp@alliancenews.com
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