Home

 
India Bullion iPhone Application
  Quick Links
Currency Futures Trading

MCX Strategy

Precious Metals Trading

IBCRR

Forex Brokers

Technicals

Precious Metals Trading

Economic Data

Commodity Futures Trading

Fixes

Live Forex Charts

Charts

World Gold Prices

Reports

Forex COMEX India

Contact Us

Chat

Bullion Trading Bullion Converter
 

$ Price :

 
 

Rupee :

 
 

Price in RS :

 
 
Specification
  More Links
Forex NCDEX India

Contracts

Live Gold Prices

Price Quotes

Gold Bullion Trading

Research

Forex MCX India

Partnerships

Gold Commodities

Holidays

Forex Currency Trading

Libor

Indian Currency

Advertisement

 
RTRS:Commodities pull FTSE lower on global growth fears
 
* FTSE down 0.4 percent

* Miners, oils down as traders worry over global demand

* Financials mixed as Barclays reports results

By David Brett

LONDON, Aug 2 (Reuters) - Mining and oil stocks dragged Britain's leading share index lower on Tuesday as doubts over the global economic recovery resurfaced following weak manufacturing data from heavyweight commodity consumers China and the United States.

Despite relief that Congress voted through an 11th hour deal to raise the U.S. debt ceiling and avoid a humiliating default on its debts, concerns remained over the country's ability to service those debts and at the same time maintain growth.

London's blue chip index fell 21.42 points, or 0.4 percent to 5,753.01 by 0758 GMT, adding to the previous session's 0.7 percent retreat, as a blitz of poor manufacturing data from the U.S., Europe, China and the UK reignited concerns that the economic recovery was stalling.

"Focus has switched, at least temporarily, from the debt crisis in Europe and the U.S. to global growth concerns with nearly a third of major global economies showing a deterioration in manufacturing," Jimmy Yates, head of equities at CMC Markets, said.

"If growth continues to be an issue that will exacerbate the debt problems in the United States, as we have already seen in Greece."

Investors will keep a close eye on the July Markit/CIPS UK construction PMI data due for release on Tuesday. A reading of 53.0 is forecast, down from 53.6 in June.

Miners and integrated oils fell in tandem with commodity prices as investors fretted over the outlook for demand.

Gold again rose to a near all-time high as investors backed its safe haven qualities to protect their returns, helping boost Fresnillo .

The precious metals miner rose 2.3 percent, faring better than the broader sector retreat as it posted a 92 percent surge in first-half core profits and raised its dividend by 128 percent.

FICKLE FINANCIALS

The banking sector was pulled higher by HSBC , which added another 1.1 percent to Monday's results-fuelled 2 percent gain. Standard Chartered , which reports its latest results on Wednesday, rose 1.6 percent.

However, UK-focused Barclays fell in choppy early trade as investors weighed up macro concerns against its results, which traders said were mixed but better than expected.

Barclays' first half profits fell by a third, offsetting a sharp improvement in bad debt charges.

"The market was expecting a weak number which has not materialised. Given the recent underperformance we remain bullish on the prospects," Atif Latif, director of trading at Guardian Stockbroker said.

"We look for strength into the second half of the year for Barclays driven primarily by cost cutting and increasing revenues in key trading areas outside the UK, income growth and steady market share increases in wealth and international."

British wealth manager and stockbroker Hargreaves Lansdown fell 7.6 percent after the Financial Services Authority proposed prohibiting payments from fund managers to platform providers.

"The FSA stance is unexpected but we would view any share price weakness as a buying opportunity," Haley Tam, analyst at Citigroup, said, adding the decision would prompt changes in business model, not revenue loss.

Elsewhere, Shire fell 3.3 percent as JP Morgan downgraded its recommendation to "neutral" from "overweight".

It said there were limited near term catalysts for the stock and its current valuation looked to be inflated by bid speculation which was unlikely to be realised.

Source