The FTSE 100 is projected to open 0.3% higher today after suffering massive losses of 2.55% on Tuesday to slip below 5,500. First it was confirmed that Australia decided to levy a 40% tax on mining companies including majors Xstrata (LSE: XTA) and BHP Billiton (LSE: BLT). Then it was reported that China raised the reserve requirements for banks in the latest move to tighten its monetary policy. The International Copper Study Group said on Friday that the country’s demand for copper could decline 13% in 2010 after jumping 38% in 2009.
Satellite communications company Inmarsat (LSE: ISAT) led the blue chips with a 2.2% gain. British American Tobacco (LSE: BATS) followed, climbing 1.9%. Outsourcing group Capita (LSE: CPI) rose 1.4%. Security services group G4S (LSE: GFS) and defence and aerospace systems manufacturer BAE Systems (LSE: BA) were the only other FTSE 100 constituents to add more than 1%, tacking on 1.3%.
Miners were the heaviest fallers in the FTSE 100. Eurasian Natural Resources (LSE: ENRC) tumbled 11.3%, Antofagasta (LSE: ANTO) shed 8.7%, BHP Billiton and Xstrata both lost 8% and Kazakhmys (LSE: KAZ) moved down 7.5%, as did part-nationalised bank Lloyds (LSE: LLOY). Anglo American (LSE: AAL) declined 6.6%.
US markets also were in selling mode yesterday. The Dow Jones Industrial Average dropped 2%, the broader S&P 500 index retreated 2.4% and the technology heavy NASDAQ composite plummeted 3%.
Asian markets were mixed today. Hong Kong’s Hang Seng declined 2.1%, China’s Shanghai Composite Index was 0.15% higher, and Australia’s S&P/ASX 200 tumbled 1.3%.
Commodities
Oil prices continued delinking. June Brent Crude slid to US$85.58/barrel, while US light, sweet crude moved down to US$82.74/barrel.
Precious metals were mixed. Gold pulled back to US$1,170/oz after rallying past US$1,190/oz yesterday. Silver extended losses, slipping to US$17.79/oz, while platinum rose to US$1,675/oz.
Base metals also headed in different directions. Copper and zinc inched higher, improving to US$3.18/lb and US$0.97/lb, while nickel fell to US$10.94/lb.
ADP unemployment data for April and ISM services index will be out in the US today.