LONDON (Alliance News) - London's main equity indices are flat ahead of the US market open, as the markets continue to stabilise following large gains made Thursday in the aftermath of the US Federal Reserve's decision not to taper its monthly USD85 billion stimulus programme.
Commentators at Accendo Markets and Spreadex suggest that Friday may have seen investors shift away from viewing the Fed's decision as positive outcome, since it keeps cheap money flowing, towards seeing the decision as potentially negative, since it could be seen as proof that the US economy still needs a lot of support.
Prior to the US market open, the FTSE 100 is down 0.2% at 6,612.85, the FTSE 250 is down 0.1% at 15,118.69, and the AIM All-Share is up 0.4% at 793.14.
At an individual stock level, the continuing fall in the price of gold, down 1.2% at USD1349.70 per ounce, means that mining companies are some of the big fallers on both the FTSE 100 and the FTSE 250. Fresnillo is down 3.3%, Randgold Resources is down 3.1%, Anglo American is down 2.7%, and Hochschild Ming is down 3.1%.
Nyota Minerals continues to be a big winner on the AIM index after its biggest shareholder, Centamin PLC, said it had launched an attempt to oust Nyota's chief executive because it was unhappy with the way Nyota is being managed and wants to move strategy on.
Plethora Solutions share price has jumped 100% on the news that the company's premature ejaculation spray has moved a step closer to receiving approval after the European Medicines Agency's Committee for Medicinal Products for Human Use recommended its approval by the European Commission.
Following on from the London markets, US futures are pointing to a flat open across the major markets with the S&P pointing down 0.2%, the DJIA down 0.1% and the Nasdaq expected to open flat.
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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