“With copper at the epicentre of the miner’s meltdown, as evidenced by the performance of the ‘pure play’ ANTO, the FTSE 100 acted out some drama, playing at meltdown with some degree of success. Also persistent worries over growth exacerbated the broader backdrop with cyclicals and question marks against their valuation coming under particular pressure.” – Thus spake the sage of Churchill Place – BGC Partners’ Mike Ingram.
However the FTSE 100, having been down by 180 points, thanks to downward momentum on the Street of Dreams triggered by poor US retail sales, has seen been a modest recovery and at 3.30pm the FTSE 100 was only down 117 points at 6417. These have not been happy trading conditions in recent days. I know of a few people who had heavy margin calls made on them during the violent gyrations of volatility in New York last night. The DOW is down 200 points as I speak with JP Morgan having posted less than satisfactory numbers – down 4%.
Miners have been absolutely larruped with the stench of fear permeating over the portals of fund, hedge fund and investors’ desks. Oil and energy stocks have not fared much better. Only media stocks seem to have avoided the ‘whips and scorns of time!” However Tesco continues its recovery in the remission ward – +2% and SuperGroup bagged the yellow jersey – up 7%. A few market sages have said enough is enough and have waded gently in to the ring and bought stock in a couple of interesting oil stocks – ARFEN & ENQUEST! We shall see!