24th Sep 2013 13:16
LONDON (Alliance News) - London's major stock indices continue to trade mixed ahead of the US market open, as blue-chips outperform their small-cap peers.
Investors are still no clearer to knowing who will join German Chancellor Angela Merkel in a coalition government. Having missed an overall majority by five seats, Merkel and her right-wing political bloc has confirmed that she has opened discussion with the Social Democrats and this has caused nervousness within the market as the last coalition between the two parties collapsed in 2009.
The FTSE 100 is up 0.3% at 6,575.14, the FTSE 250 is up 0.7% at 15,023.01, whilst the AIM All-Share index is down 0.4% at 786.75.
Investor uncertainty extends to the US with Wall street currently forecast to open relatively flat. The S&P and the DJIA are both called to open virtually unchanged. The Nasdaq is expected to open 0.1% higher.
Redbook data from the US showed a decrease in retail sales in the first three weeks of September when compared to August, according to reports. However, sales increased by 3.9% when compared to September last year.
With housing price data consensus forecasts indicating an increase of 0.9%, according to FXstreet.com, the US dollar edged higher against its major counterparts ahead of the 1400 BST release. The dollar currently trades at 1.5964 against the pound, 98.688 against the yen and 1.3471 against the euro.
At the equity level, the price of gold is currently trading at a five-day low of USD1314.8 an ounce, weighing on gold stocks. Subsequently, Randgold Resources, down 2.1%, Fresnillo, down 2%, and Anglo American, down 0.9%, are three of the biggest fallers on the blue-chip index prior to the US market open.
Ferrum Crescent continues to make large gains, up 57%, on the AIM All-Share index. The minerals exploration company recently announced that it had signed an investment agreement worth USD13.5 million with Anvwar Asian Investment over its Moonlight Deposit. Anvwar will acquire a 35% holding in Ferum Iron Ore Limited, as well as injecting money into its bankable feasibility study costs at the Moonlight project.
Still to come in the data calendar is housing price index data at 1400 BST. Consumer confidence and Richmond Fed manufacturing index will be released at 1500 BST.
By James Kemp; [email protected]
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Related Shares:
Anglo AmericanRandgold ResourcesFerrum CrescentFresnillo