logo-loader
Market ReportMarket Movers

FTSE100 tipped to bounce after global sell-off continues overnight

stock_market_350_4dc24466047a9.jpg

The FTSE100 is tipped to start bouncing-back from yesterday’s 100 point fall by the bookies and spread-betters this morning.

In global markets yesterday was the third straight down day, with weakening commodity prices and concern’s over the America’s economic recovery troubling investors.

In London the FTSE100 dropped 98.81 points to 5,984.07 on Wednesday as the miners, and other resource stocks, weighed heavy on the index.

US markets fell for a third straight day as commodity prices remained soft and important economic figures fuelled negativity among investors.

The Dow Jones fell by nearly 84 points, about 0.66 percent, to 12,723.58. The S&P500 also weakened slipping 9.3 points to 1,347.32 while the NASDAQ Composite fell 13.39 points to 2,828.23.

Meanwhile the ‘fear index’ - the Chicago Board Options Exchange (CBOE) volatility index (VIX), which measures expectations of near-term volatility via corresponding S&P 500 stock index option prices – rose for the fourth straight session.

The latest sell-off in America was pushed along by worse than expected job numbers as well as falling oil prices, after rising US crude stockpiles raised concerns over demand.

The trend continued in Asia overnight with the major markets also falling lower – except in Japan, South Korea and Thailand where markets are closed due to public holidays. The MSCI Asia Pacific (excluding Japan) index was 0.3 percent lower at 492.17. In Hong Kong the Hang Seng was 0.1 percent lower while China’s Shanghai Composite index was down 0.2 percent.

In Australia the market bounced back from early session lows to finish in positive territory, helped by National Australia Bank’s (ASX:NAB) better-than-expected financial results and a rebound among mining shares. The S&P/ASX200 index closed the session 0.31 percent higher as it tacked on 14.80 points to 4,754.90.

Commodity prices were weaker again overnight. Oil continued to slide although prices were off the lows as the Asian session progressed, WTI (light sweet crude) futures were down US$0.44 at US$108.80 a barrel.

Precious metals also continue to be dragged down by silver, which is now at its lowest level for a month after it dropped nearly US$2.50, about 6 percent, overnight to trade at US$39.24 an ounce. Meanwhile gold dropped as much as US$40 an ounce, before recovering somewhat. Overall it lost about US$15 overnight and it is trading at around US$1,520 an ounce.

Base metals were generally lower too with copper, nickel, aluminium, lead and uranium each losing between 0.25 and 0.80 percent. Meanwhile zinc edged up 0.11 percent.

Despite the continued sell off in global markets the bookies and spread-betters are predicting a slightly higher start in London.

They are predicting a 30+ point bounce to around 6,010 – after it fell almost 100 points, or about 1.6 percent, on Wednesday.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: PFS values Infinity Lithium's flagship San José project at...

Infinity Lithium Corporation Ltd's (ASX:INF) executive director of corporate strategy Vincent Ledoux Pedailles chats to Proactive London's Andrew Scott following the publication of a PFS (pre-feasibility study) for the development of its flagship San José lithium project in Spain. The study...

7 hours, 4 minutes ago

3 min read