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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza