Well there was blood running down Threadneedle Street and Canary Wharf today. Dealers and analysts were at their wits end. Markets makers were rudderless and they were running around like headless chickens. Volumes have been slightly better than average as they were seen dodging business on the way down. However volumes in the mining sector have been gargantuan


After steady sessions in New York yesterday and Asia this morning, where dealers felt that it might be constructive to take a parochial view on their respective indices, these markets made a bold showing. However it was not to be in dear Old Blighty, where European dealers were distracted by negative news on a few issues. Analysts still feel that that stock valuations look a bit rich. Also it did not help that BHP fed the market with an uncomfortable feeling that it might need a bond issue. Then the situation was exacerbated when Credit Suisse downgraded the mining sector, which sent out distress signals. Dealers and traders picked in Glencore, which fell by 13% to 98.5p before rallying to down being 11% down at 105p. Anglos were also trolleyed – down 7% with Rio just losing 3%, though they were down nearly 5% at one time. With Glencore not involved in coal and iron ore, the future recovery does not seem that close at hand. However CEO Ivan Glasenberg must never be underestimated.


Oils had a torrid time with BP easing by 2.5%. There was zero appetite for risk. Drugs came under the cosh with GSK losing 2.75% and Astra Zeneca 3.5% partly thanks to inflammatory comments made by Hillary Clinton on biotech companies yesterday. Banks were down 2% and media stocks by an average of 1%. Of those companies reporting numbers or trading statements today, IG was up 2.5%, Card Factory was down 0.75% having been up 1.5%. Close Brothers and PZ Cussons were near enough flat. AA lost 8.5%. Its sales were down as it struggled with its insurance business. Mitchell and Butlers replaced its CEO with Phil Urban. The trading update did not pass muster – shares down 5.8% at 3.10pm. The FTSE 100 was down 118 points at 5990 and The Street of Dreams was on the back foot with the DOW down 193 points.



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