Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks Slip, Ignore Elections Ahead Of NFP; Steel In Focus

By CMC Markets (Jasper Lawler)Stock MarketsMay 06, 2016 12:14
uk.investing.com/analysis/stocks-slip,-ignore-elections-ahead-of-nfp.-steel-in-focus-200128351
Stocks Slip, Ignore Elections Ahead Of NFP; Steel In Focus
By CMC Markets (Jasper Lawler)   |  May 06, 2016 12:14
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Markets were lower on Friday, showing typical caution ahead of the monthly US unemployment report as some European stock exchanges came back online having been closed for Ascension Day.

The FTSE 100 was down around half-a-percent by mid-morning. A good showing for the generally more market-friendly Conservative Party in local elections has had little bearing on sentiment. A Labour Party wash-out that some were forecasting might have garnered a bigger market reaction.

A rebound in the price of gold off yesterday’s lows has helped gold-miner Randgold (LON:RRS) to the top of the UK benchmark whilst Inmarsat (LON:ISA) sank for a second day, leading the decliners.

Rio Tinto (LON:RIO) dropped over 1%, modestly outperforming a broader fall across the mining sector after confirming plans to invest into the Oyyu Tolgoi copper mine in Mongolia. There is some scepticism over the timing of the investment when copper prices sit near decade-lows. What’s worth considering is that this is one of the best under-developed projects. Initial production would start in 2020, by which time a shortage of copper supply from a pullback in capex across the industry is likely to have pushed copper prices higher.

Shares of ArcelorMittal (LON:0NSF) are lower after the world’s largest steel company posted another loss while forecasting a ‘fragile’ rise in steel demand. Excalibur Steel is speaking with bankers for funding to buy Tata Steel's (NS:TISC) UK operations. Bank-supported funding would address one of the major obstacles to Excalibur’s bid but plans to offload the pension scheme to the taxpayer-backed PPF likely needs to be scrapped before a deal would be acceptable. Liberty House looks like a more stable buyer than the make-shift consortium of management and other interest partiers. The risk with Liberty House is that it ends up being more of the same failed approach.

Japan’s Nikkei dropped for a sixth straight session, its worst run since the global sell-off at the start of the year. There was some optimism surrounding the appointment of a new CEO at Toshiba (T:6502). Mr Tsunakawa did well at Toshiba’s healthcare unit and his detachment from the accounting scandal means he can bring an untainted perspective along with an understanding of the business.

US markets look set for lower start before non-farm payrolls with Warren Buffet’s Berkshire Hathaway (NYSE:BRKa) set to report earnings.

USA pre-opening levels
S&P 500: 4 points lower at 2,046
Dow Jones: 39 points lower at 17,621
Nasdaq 100: 10 points lower at 4,299

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Stocks Slip, Ignore Elections Ahead Of NFP; Steel In Focus
 

Related Articles

Stocks Slip, Ignore Elections Ahead Of NFP; Steel In Focus

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
or
Sign up with Email