23rd Sep 2013 13:16
LONDON (Alliance News) - London's main stock indices are lower ahead of the US market open as markets continue a gradual fall from the large gains made last Thursday and investors stay cautious as they wait to see who will become the junior partner in the German government.
German chancellor Angela Merkel won an historic third term over the weekend after gaining a ringing endorsement from the German electorate that pushed her Christian Democrats to within a whisker of winning outright, but her junior partners in the last coalition were given a pasting at the polls, leaving her with the unsavory prospect of having to court her leftist arch-rivals -- the main Opposition, the Social Democrats (SPD) -- to rule the biggest European economy.
Merkel, who has pledged not to change policy on Europe, is going to bide her time on forming the necessary coalition, saying she'll wait until the end of the week before she even considers proposals.
The FTSE 100 is down 0.5% at 6,561.8, the FTSE 250 is down 0.2% at 15,000.29, and the FTSE AIM All-Share is down 0.3% at 791.91
At an individual stock level, the ongoing decline in the price of gold, down 0.2% at USD 1322.65 per ounce, means that gold mining companies continue to be amongst the biggest fallers. Randgold Resources, down 2.2%, Anglo American, down 1.6%, and Fresnillo, down 1.2%, are three of the biggest losers prior to the US market open.
Ariana Resources are big gainers, up 57% on the AIM All-Share index, after it said it has discovered four highly mineralised gold-silver zones within the Kepez and Karakavak prospect areas at its Red Rabbit Gold Project in Western Turkey and substantially increased the number of gold-silver bearing veins mapped in the region.
Despite positive PMI data from across Europe, the euro has lost ground against its major rivals. The euro fell back to the key 1.35 level against the US dollar.
Wall Street is currently expected to open mixed. The S&P is called to open 0.2% lower, the DJIA 0.1% lower, whilst the Nasdaq is anticipated to open 0.4% higher Monday.
In the data calendar, Markit US manufacturing figures are scheduled for 1358 BST. Later on, European Central Bank President Mario Draghi will provide the introductory statement at the European Parliament's Quarterly Hearing in Brussels at 1400 BST.
By James Kemp; [email protected]
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Anglo AmericanRandgold ResourcesArianaFresnillo