London’s FTSE-100 has once again given up its grip on the 7,000 level as Wednesday’s session gets underway, although big moves at the stock specific level are thin on the ground.
By Tony Cross, Monk Communications
There is however one standout with Antofagasta down almost 7% off the back of a production update that critically flagged higher capex costs in 2017. Banking group Lloyds is also struggling after disappointing results and news that it was adding a further £1bn to its provision for PPI fines, whilst the natural resources firms are also struggling as fears mount that Opec won’t be able to implement the planned production cuts next week.
Again we have a relatively quiet day ahead although mortgage figures from the BBA could provide some direction, especially for the house builders, whilst the other key release will be US oil inventory figures. As noted, crude prices are languishing and a significant build in reserves is expected to be reported for the week. This could be sufficient to knock sentiment in the sector once again and it’s worth bearing in mind that the market is almost itching to find a trigger for a correction. With it looking increasingly less likely that Trump will win the race for the White House, a spat amongst key oil producer nations could well be the trigger that many are looking for.