CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

FTSE dragged lower by mining stocks

Article By: ,  Financial Analyst
February 7, 2012 12:16 PM

The video cannot be shown at the moment. Please try again later.

  • Following yesterday’s close, the FTSE has fallen 30 points since its open, with the leading fallers dominated by mining stocks.
  • The biggest story of the day so far surrounds Anglo-Swiss commodities firms Xstrata and Glencore reaching an agreement on the terms of a recommended all-share merger of equals in a $90 billion deal. This includes a merger ratio of Xstrata shareholders being offered 2.8 new Glencore shares for every Xstrata share held, with the merger valuing each Xstrata shares at 1290.10 pence and the entire issued share capital of Xstrata at approximately £39.1 billion. Xstrata, incidentally, reported full-year attributable profits of $5.8 billion, up 12% year-on-year, and proposed final dividend of 27 cents per share, bringing the full year dividend to 40 cents, a 60% increase on 2010. Xstrata shares are currently trading lower this morning, by circa 2%. Glencore International is up 1.5%.
  • Also reporting full-year results is BP. The company said its Q4 attributable profit to BP shareholders was $7.68 billion, compared to $5 billion a year earlier, and is expected to pay a quarterly dividend of 8 cents per share. BP shares are trading very slightly lower by circa 0.2%. Peers Cairn Energy and Shell are amongst the biggest risers.
  • In European indices, the German DAX is also trading 45 points lower, and the French CAC is 20 points lower.
  • In bond markets, the UK will auction its sovereign bonds later this morning. Finally, amongst economic data today that could prove significant, German Industrial Production figures are due at 12pm and US Consumer Credit figures are due in the evening. Thanks for watching, and best of luck with your trading.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024