Investors took a dim view of this morning’s news, with London’s blue-chips struggling early on.
The UK’s third quarter GDP figures will attract headlines this morning, with analysts expecting the figure to fall to 0.6% from 0.7% in the first and second quarter.
Later this today, the Federal Open Market Committee (FOMC) meets to discuss interest rates, though investors have pushed back expectations of a rate hike to next year.
Early deals were dominated by corporate news, with BP (LON:BP.) reporting a US$1.8bn profit for the third quarter, which is almost half of the US$3bn for the comparative period of 2014.
Connor Campbell, at Spreadex, said the results were “better than expected”, preventing the firm “from sinking into the gutter alongside its commodity peers”.
Analysts had expected profit to fall to US$1.2bn, while further capex cuts were well received, sending shares 2.5p higher to 387p.
It could not prevent the FTSE100 slipping, however, as falling miners sent the index 27 points, or 0.4%, lower to 6,390.
Key indices in Asia were mostly lower overnight. Japan’s Nikkei was down 0.9% at 18,777, but there were small gains for Hong Kong’s Hang Seng, up 0.1% to 23,143 and the Shanghai composite.
Anglo American (LON:AAL) dropped around 2% to 579p while BHP Billiton (LON:BLT) lowered 2.1% to 1,106p and Rio Tinto (LON:RIO) rounded out the top three, falling 1.2% or 29p.
In the mid-cap space, TalkTalk (LON:TALK) rebounded today on reports that the police have arrested a 15 year old in Northern Ireland in connection with the cyber-attack last week.
“We know this has been a worrying time for customers and we are grateful for the swift response and hard work of the police” a spokesperson said. Shares rose 7% to 241p.
Meanwhile, Nostrum Oil & Gas (LON:NOG) slashed its production guidance for the year after repairs had to be made to its pipeline. Shares spilled 5% to 455p.
In the small cap world, munitions maker Chemring (LON:CHG) will launch a big rights issue after delays to a big Middle East contract put it in danger of a loan covenant breach.
Shares slumped 36% on the news of the share issue, which will raise £90mln in the first quarter of 2016.
Elsewhere, Amino Technologies (LON:AMO) was 26.5% lower to 115p after the firm issued a profit warning due to a shortfall in revenue in its core business caused by an unsatisfactory sales effort.
On a more positive note, Strat Aero (LON:AERO) soared 12% to 5.9p.
Geocurve Holdings its UAV inspection and surveying division, and Barhale, a civil engineering firm, are close to inking a £1.3mln contract for Geocurve’s services over five years.
Meanwhile, Baron Oil (LON:BOIL) rose 5.2% to 0.4p as the seismic programme planned for Block XXI onshore Peru is now expected to start in or around November 10.
Some equipment was delayed from Mexico but has not been damaged and will leave for Peru later this week.