24th Sep 2013 16:35
LONDON (Alliance News) - Gold miners were the worst performers in the London markets Tuesday as the price of gold sank to a five-day low, but the large- and mid-cap indices closed up on the day amid gains on most of the global equities markets and as President Obama made encouraging remarks about Iran at the United Nations.
Fresnillo, Randgold Resources and Anglo American were among the biggest fallers on the FTSE 100 as the gold price continued to decline in the wake of the Fed's decision last Thursday to leave its asset purchase programme unchanged. The yellow metal hit a low of USD1,306.13 an ounce.
Despite this, the FTSE 100 ended up 0.2% at 6,571.46, the FTSE 250 climbed 1% to 15,063.23, both outperforming the small cap indices as stocks in Europe and Wall Street rose. The AIM All-Share closed down 0.2% at 787.86.
At the close of the London markets, the DJIA was up 0.1% at 15,417.85, the S&P was up 0.1% at 1,704.08, and the Nasdaq was up 0.4% at 3,780.09.
The pound was trading at USD1.6004 at the London equities close, having declined against other major currencies in the immediate aftermath of the release of UK mortgage approvals figures.
Mortgage approvals increased in August from July, both in terms of value and volume, but the figures missed forecasts. The numbers of mortgages approved for house purchases increased to 38,228 from 37,428, the highest since 2009 but below a consensus forecast 38,600.
A series of disappointing data came from the US. The manufacturing index compiled by the Richmond Federal Reserve was flat in September from 14 in August, missing expectations of a rise to 17, while US consumer confidence fell to 79.7 in September, from an upwardly revised 81.8 in August.
Despite the poor figures, the dollar remained relatively strong against its major rivals.
In wide-ranging remarks to the United Nations, Obama said he was encouraged that new Iranian President Hassan Rouhani received a mandate from the Iranian people to pursue a more moderate course, and he would direct Secretary of State John Kerry to pursue efforts to reach an agreement with the Iranian government regarding its nuclear program.
The UN general assembly is meeting to discuss resolutions on Syria, and Obama called on the UN Security Council to pass a strong resolution ensuring Syria keeps its commitments to get rid of its chemical weapons stockpile. He welcomed the deal brokered by Russia.
Despite the underperforming AIM index, there were some big moves by constituents. Phytopharm jumped 47% as it resumed trading in the wake of its reverse takeover deal Monday, and Ferrum Crescent put on another 80% as it continued to benefit from its USD13.5 million investment deal with Anvwar Asian Investment.
Wednesday's data calendar has French business climate data at 0745 BST and Italian consumer confidence at 0900 BST. UK CBI distributive trades survey data is scheduled for 1100 BST. US MBA mortgage applications are due at 1200 BST, with US Durable goods orders at 1330 BST. Later in the day, US new homes sales will be announced at 1500 BST, and EIA crude oil stocks information is at 1530 BST.
The corporate calendar is again light in terms of UK blue-chips, with trading statements from Topps Tiles and Daily Mail & General Trust and interim results from Laura Ashley and sub-prime lender S&U among Wednesday's early highlights.
By James Kemp; [email protected]
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