London midday: Financials, miners drag markets lower

- UK CPI falls to 13-month low- Dovish comments from ECB members- RBS taken off 'buy' list at GoldmantechMARK 2,643.61 +0.11%FTSE 100 6,714.21 -0.21%FTSE 250 15,378.49 -0.27%Investors on Tuesday gave little reaction to a sharp fall in UK inflation as heavy falls in the banking and financial sectors continued to weigh on markets.British consumer price inflation fell from 2.7% in September to a 13-month low of 2.2% in October, according to the Office for National Statistics. The data came in well below the consensus forecast of a dip to 2.5% and was far lower than the Bank of England's (BoE) estimate for inflation to be at least 2.8% for the rest of 2013. Eyes are now turning to the BoE's Inflation Report due out tomorrow morning with price rises now running closer to the Bank's 2% medium-term target."It's clear that the bond-buying scheme by the BoE is burning the candle at both ends: output and growth are increasing while inflation is declining, leaving the door open for a longer-than-expected quantitative easing programme," said David Madden, Market Analyst at IG. "The major risk when operating a stimulus package is that an accelerated inflation rate will outstrip the level of growth, but as this is not an issue for the BoE its £375bn scheme is unlikely to be reduced anytime soon."Markets were also focusing on dovish comments from two European Central Bank (ECB) officials this morning, who both left the door open to further action following last week's rate cut.ECB Governing Council member Ewald Nowotny indicated that while many central banks have reached the lower bound in interest rates, that's not the case of the ECB, according to a report by FXStreet. He also warned that stagnation and not inflation was the danger for the Eurozone, noting that while deflation is not imminent, it must be on the minds of central bankers. Meanwhile, in an interview with German newspaper Neue Osnabruecker Zeitung, ECB member Joerg Asmussen refused to rule out the possibility of negative deposit rates.Financials and miners fall; corporate earnings come in mixedA decline in risk appetite hit stocks in the financial and mining sectors on Tuesday with Fresnillo, Anglo American and Vedanta in the red, along with Aberdeen Asset Management, Standard Chartered and RBS.RBS was also being pressured lower by a downgrade by Goldman Sachs from 'buy' to 'neutral' following the conclusion of the 'good bank-bad bank' review. Analysts said that the stock now offers just 9% potential upside to its target price of 370p, similar to others in the sector.Heading the other way was building materials giant CRH after reporting a 2% increase in like-for-like sales in the third quarter, a strong turnaround after a 6% decline in the first half owing to difficult weather conditions. Vodafone gained after the £22bn in revenues reported for the first half came in 1.1% ahead of consensus estimates. Underlying earnings of £6.61bn also beat forecasts by 3.4%.Life insurance investment vehicle Resolution was lower after a mixed third quarter, as significant growth in UK new business was outweighed by a more subdued performance overseas.Babcock, the engineering support services company, fell after a broadly in-line first-half report in which it lifted its dividend by 10% following a 32% jump in pre-tax profits.Oxford Instruments surged after "significant strengthening" in its second-quarter results and revealed it was in talks to acquire AIM-listed Andor Technology.FTSE 100 - RisersCRH (CRH) 1,608.00p +3.14%British Sky Broadcasting Group (BSY) 845.00p +1.93%Vodafone Group (VOD) 230.95p +1.58%InterContinental Hotels Group (IHG) 1,847.00p +1.48%Croda International (CRDA) 2,331.00p +1.13%Kingfisher (KGF) 390.20p +1.06%Severn Trent (SVT) 1,816.00p +1.00%ITV (ITV) 188.90p +0.80%Unilever (ULVR) 2,497.00p +0.77%Sainsbury (J) (SBRY) 396.80p +0.71%FTSE 100 - FallersFresnillo (FRES) 911.00p -4.36%Aberdeen Asset Management (ADN) 418.50p -4.15%Royal Bank of Scotland Group (RBS) 331.00p -2.59%Tullow Oil (TLW) 895.00p -2.24%Petrofac Ltd. (PFC) 1,413.00p -2.15%Anglo American (AAL) 1,447.50p -1.80%Standard Chartered (STAN) 1,482.00p -1.76%Coca-Cola HBC AG (CDI) (CCH) 1,741.00p -1.47%Schroders (SDR) 2,506.00p -1.42%Randgold Resources Ltd. (RRS) 4,625.00p -1.34%FTSE 250 - RisersOxford Instruments (OXIG) 1,391.00p +13.37%TalkTalk Telecom Group (TALK) 272.60p +9.08%Premier Farnell (PFL) 241.00p +5.93%BTG (BTG) 444.40p +4.74%Bank of Georgia Holdings (BGEO) 2,095.00p +3.35%Computacenter (CCC) 587.00p +2.09%Dialight (DIA) 915.00p +2.01%Renishaw (RSW) 1,732.00p +1.94%Workspace Group (WKP) 509.00p +1.80%PZ Cussons (PZC) 380.90p +1.79%FTSE 250 - FallersMenzies(John) (MNZS) 761.50p -7.08%Polymetal International (POLY) 530.50p -6.52%African Barrick Gold (ABG) 189.00p -4.35%Evraz (EVR) 119.50p -3.86%Hochschild Mining (HOC) 152.00p -3.61%Hunting (HTG) 831.00p -3.60%Lonmin (LMI) 330.30p -3.11%Ferrexpo (FXPO) 186.50p -2.86%Balfour Beatty (BBY) 275.70p -2.75%Xaar (XAR) 900.00p -2.70%BC