FTSE Lower on Mining Stocks Profit Taking

Leading shares have drifted lower but mining shares have suffered a spate of profit taking, amid continuing worries about demand.

Investors were buoyed on Friday by the Chinese central bank’s surprise interest rate – which sent commodity companies soaring – and hints from the European Central Bank that it was prepared to take action to boost the flagging eurozone economy and counter deflation fears.

But there is a calmer mood in the markets at the start of the new week, with the FTSE 100 down 1.90 points at 6748.86. There has been some support from a better than expected German confidence survey.

BHP Billiton is down 26p at £16.36 as it reacted to falling metal prices by stepping up its cost cutting programme. It is reducing capital expenditure at its copper and coal operations, but also expects a $500m increase in productivity gains to $4bn a year, following the spin-off of its aluminium, non-core coal, manganese, nickel and silver assets into a separately listed company.

via The Guardian

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